If households consume less at each level of disposable income, they are:
A. Saving more
B. Saving less
C. Spending more
D. Working less
A. Saving more
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The omission of household production causes actual economic production to be underestimated
Indicate whether the statement is true or false
Refer to Figure 9-3. With a quota in place, what is the quantity consumed in the domestic market?
A) 10 million pounds B) 28 million pounds C) 34 million pounds D) 40 million pounds
Suppose that Jean normally orders three tacos, but on seeing that their price has gone up, decides to buy only two. Jean's decision is best explained by:
A) income and substitution effects. C) the principle of comparative advantage. B) the law of supply. D) the law of increasing opportunity costs.
Lars almost always use SpeedyStop gas station because it is close to his home. What type of product differentiation is he being influenced by?
a. physical differences b. prestige c. location d. service