Use the following data to answer the next question. The disposable income (DI) and consumption (C) schedules are for a private, closed economy (an economy with no government and no international trade). All figures are in billions of dollars.Disposable IncomeConsumption$300$310350340400370450400500430If disposable income is $550, we would expect consumption to be
A. $430.
B. $460.
C. $450.
D. $470.
Answer: B
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Assume the economy is closed and that it is operating at full employment. Which statement is TRUE when the size of the budget deficit decreases?
A) The increased amount of public goods will crowd out privately produced goods. B) A reduction in the growth of productivity, and a reduction in society's standard of living will occur. C) The interest rate will decrease, leading to an increase in investment and capital formation. D) Demand and supply of credit will increase.
What does the vertical intercept of a production possibilities frontier represent?
What will be an ideal response?
What is the unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed?
a. 20.2 % b. 16.8% c. 14.4% d. 11%
Economists would describe cartels as
A. the opposite of ignoring interdependence. B. a collusive arrangement. C. an undesirable form of market organization that may charge a monopoly price. D. All of the responses are correct.