Which of the following is true of disposable income?
a. It excludes transfer payments
b. It is the portion of income that is used solely for consumption.
c. It is that part of total earned income that is paid to the government in the form of taxes.
d. It is the difference between income and saving.
e. It equals consumption expenditures plus saving.
e
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Economists emphasize the importance of ____ in analyzing demand.
A. quantity B. market potential C. wants and needs D. price E. sales opportunities
________ refers to alternating periods of economic expansion and economic recession in an economy
A) Fiscal policy B) Labor productivity C) The business cycle D) Positive economic analysis
Receipt of foreign aid permits less-developed countries to move to a point outside their production possibilities curve
a. True b. False Indicate whether the statement is true or false
An example of physical capital is:
A. a tractor. B. a farmer. C. a high-yield seed varietal. D. All of these are examples of physical capital.