The consumption schedule shows the relationship of household consumption to the level of:
A. Saving
B. Investment
C. Disposable income
D. The marginal propensity to consume
C. Disposable income
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Adam Smith advocated laissez-faire because he believed it was in the interest of:
A. society as a whole. B. capitalists, whom he regarded as the most dynamic and progressive element in society. C. the proletariat, who would receive higher wages. D. the government, which would profit from higher taxes.
The profit maximizing combination of resources
A. is also the cost minimizing combination of resources. B. usually involves hiring more of some resources and less of other resources than the cost minimizing combination of resources. C. usually involves less of each input hired than the cost minimizing combination of resources. D. usually involves more of each input hired than the cost minimizing combination of resources.
Suppose that technological advancement makes labor more productive. What is likely to happen to wages and to potential output?
A) Wages decrease and potential output increases. B) Wages decrease and potential output decreases. C) Wages increase and potential output increases. D) Wages increase and potential output decreases.
Along a downward-sloping linear demand curve
A) the marginal utility from the consumption of each unit of the good rises and the total utility from consuming larger quantities remain constant. B) the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities remain constant. C) the marginal utility from the consumption of each unit of the good falls and the total utility from consuming larger quantities increases. D) the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities increase.