Given the consumption function C = $500 billion + 0.80Y, an increase in disposable income from $6,000 billion to $7,000 billion will cause consumption to increase by:
a. $800 billion.
b. $1,000 billion.
c. $1,300 billion.
d. $1,500 billion.
e. $1,800 billion.
a
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The European Union's Common Agricultural Policy (CAP) is, in effect
A) a tariff imposed on agricultural exports. B) a tariff imposed on agricultural imports. C) a subsidy that reduces the cost of agricultural exports. D) a subsidy that increases the cost of agricultural exports. E) a quota that limits production of agricultural goods by EU nations.
If government were to regulate a monopolistically competitive market by setting a single price, a consequence would be:
A. less output supplied to the market. B. higher prices. C. less product variety. D. All of these statements are true.
Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 The opportunity cost of moving one miner from Scraping Bottom to another mine is:
A. 3 tons per day. B. 4 tons per day. C. 0 tons per day. D. 5 tons per day.
Households supply factors of production to businesses and are paid by businesses for doing so. The market where this interaction takes place is called the factor market.
Answer the following statement true (T) or false (F)