In the above figure, when real disposable income equals 600
A) there is dissaving. B) real disposable income exceeds consumption.
C) consumption is less than disposable income. D) consumption equals real disposable income.
D
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If a prisoners' dilemma game is played repeatedly, what punishment strategies might the players employ and how does playing the game repeatedly change the equilibrium?
What will be an ideal response?
When all prices are set equal to marginal costs,
A. consumers buy more than they should. B. consumers will get less utility. C. markets are giving correct signals to consumers. D. producers make excessive profits.
Depreciation:
A. estimates the decrease in value of capital goods due to wear and tear over the year. B. represents a firm's expenditure to add to its capital stock. C. is the reduction in business inventories per year. D. is the decline in the value of a firm's stock.
The main disadvantage of an emissions tax is that
a. The total pollution reduction from an emissions tax can not be known for sure b. Firms lack the flexibility to pursue different technologies c. Firms do not have an incentive to reduce pollution d. Firms can not be behave in an economically-efficient manner e. Differences among firms are not incorporated into the policy