What causes a direct increase in consumption spending
What will be an ideal response?
an increase in disposable income
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Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W24X18 How many books will Campus Books sell if it must charge a single price to all of its customers?
A. 5 B. 7 C. 3 D. 4
A nation can finance a deficit on its current account with
A. a surplus on its capital account. B. a deficit on its capital account. C. official purchases of foreign currencies with its own currency. D. purchases of gold from foreign currencies with its own currency.
If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach, then
A) consumption spending would need to be adjusted for depreciation. B) it will be very difficult to assign a fair market value to a used good. C) we will have to account for the natural depreciation that a used good experiences. D) we also will have to account for spending on financial assets. E) we will be counting the value of the used goods both at the time of their production and at the time of their re-sale.
Critics of advertising make which of the following claims about advertising? i. It often creates "needs" for trivial products. ii. It manipulates people's tastes. iii. It uses scarce resources and raises costs
a. (i) and (ii) only b. (i) only c. (ii) only d. (i), (ii), and (iii)