The consumption function has two components: (1) consumption that depends on the level of income and (2)
a. permanent consumption
b. transitory consumption
c. autonomous consumption
d. automatic consumption
e. expected consumption
C
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What role does money play in the circular flow model?
A production function: a. shows the relationship between a firm's costs and revenues
b. shows the relationship between production and profits. c. shows the relationship between inputs and the maximum output that can be produced from those inputs. d. shows the relationship between variable inputs and fixed inputs.
The use of automated teller machines (ATMs) has caused some bank tellers to lose their jobs. This is an example of
a. cyclical unemployment. b. seasonal unemployment. c. frictional unemployment. d. structural unemployment.
Which of the following measures of cost is best described as "the cost of a typical unit of output if total cost is divided evenly over all the units produced?"
a. average fixed cost b. average variable cost c. average total cost d. marginal cost