The relationship between households' planned consumption expenditures and households' level of disposable real income is called
A) the consumption function.
B) the savings function.
C) the investment function.
D) the household aggregate demand function.
Ans: A) the consumption function.
You might also like to view...
In 2009 Al Gore won the Nobel Peace Prize and was awarded $1.4 million. He donated it to his Alliance for Climate Protection. From the economic point of view his charitable project suggests
A) Gore himself no longer faced scarcity because he was in a position to give so much of his money away. B) the Alliance at least temporarily overcame scarcity because they enjoyed free resources. C) it was chosen over other uses of his money, and therefore even Gore had to economize. D) it was a ploy to gain more media attention after his Vice Presidency.
Which of the following statements is not true?
a. growing employment in retailing and restaurants contributes to the wage decline of high school graduates. b. the decline in union membership has contributed to income inequality. c. the increased use of technology in manufacturing has increased income inequality. d. since service industries are less likely to use technology, they are more likely to be unionized.
In the long run, equilibrium for a monopolistically competitive firm resembles equilibrium for a monopoly in the sense that
a. both types of firms are able to earn economic profits b. marginal cost exceeds marginal revenue c. price equals marginal cost d. price exceeds marginal cost e. average revenue exceeds price
The factor accounting for most of the earnings difference between equally educated and experienced men and women is that women
A. receive less pay for equal work. B. are segregated into low-paying occupations. C. receive comparable pay only when they do work of comparable value to the employer. D. are prohibited by law from doing certain kinds of work.