The most important determinant of a household's consumption spending is
a. its disposable income
b. the in-kind transfers received by the household.
c. the level of education of the members of the household.
d. the interest rate.
e. the ratio of wage to non-wage income of the household.
Answer: a. its disposable income
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Which of the following, in order, describes the three steps of the demographic transition?
A. Low birthrates and death rates; high birthrates and low death rates; high birthrates and death rates. B. High birthrates and death rates; low birthrates and high death rates; low birthrates and death rates. C. High birthrates and low death rates; high birthrates and death rates; low birthrates and death rates. D. High birthrates and death rates; high birthrates and low death rates; low birthrates and death rates.
Assume the graph shown represents the market for button-up shirts and was originally in equilibrium with D and S. What type of shock might cause a shift from D to D2?
A. The price of ties went up. B. The price of buttons has increased. C. The price of sweatshirts went up. D. Income has increased.
If all firms in the industry have similar demand, marginal revenue, and cost curves as the firm in the figure above, in the long run
A) nothing changes. B) some firms exit the industry and the economic losses of the remaining firms decrease. C) some firms exit the industry and the economic profits of the remaining firms increase. D) new firms enter the industry and the economic losses of the original firms decrease. E) new firms enter the industry and the economic profits of the original firms increase.
Which of the following countries began economic liberalization in the 1970s and have achieved an impressive record of economic growth since that time?
a. Venezuela and Zimbabwe b. China and Chile c. Mexico and Canada d. United States and Norway