Dissaving occurs when:
A. Income is greater than saving
B. Income is less than consumption
C. Saving is greater than consumption
D. Saving is greater than the interest rate
B. Income is less than consumption
You might also like to view...
Refer to Figure 16-6. With a two-part pricing scheme - a monopoly price for classes and a one-time membership fee - what is the amount of producer surplus Sensei will earn?
A) an amount equal to the area A + B + C + D + H + G B) an amount equal to the area A + B + C + D C) an amount equal to the area E + F D) an amount equal to the area A + C + H
Which of the following is not an example of microfinance?
A. A loan to a bakery for a machine to mix dough. B. A loan to a small farmer for fertilizer. C. A loan to an executive for a retirement home. D. A loan to a restaurant owner for an indoor grill.
It is in the self-interest of individuals to
A. eliminate the total bargaining costs in any relationship. B. minimize the total contracting costs in any relationship. C. maximize the total contracting costs in any relationship. D. reduce value through formal contracting costs.
Refer to the information provided in Table 6.4 below to answer the question(s) that follow. Table 6.4Number ofDonuts per DayTotal UtilityMarginal Utility180?2150?3200?4230?5?10Number ofBurritos per DayTotal UtilityMarginal Utility160?2108?3144?4168?5?12Refer to Table 6.4. If the price of a donut is $2, the price of a burrito is $4, and Luigi has $12 of income, Luigi's utility-maximizing combination of donuts and burritos per day is
A. 2 donuts and 1.5 burritos. B. 1 donut and 2 burritos. C. 4 donuts and 1 burrito. D. indeterminate from this information.