If two households have the same disposable income in the current year, the household with the
A) higher expected future income will consume a larger portion of its current income today.
B) lower expected future income will consume more today while it has the money.
C) lower expected future income will spend a larger portion of its current income on consumption today because it will increase its saving in the future.
D) none of the above
A
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If a profit-maximizing manager is provided a forecast regression with a R2 equal to 1.00, this allows the manager to produce where ________ marginal revenue is ________ the marginal cost.
A) actual; equal to B) expected; greater than C) expected; equal to D) actual; greater than
It is often observed that, over the same period of time and for the same good, marginal utility declines rapidly for some consumers and very little for others. This observation illustrates:
a. that economic theory is of little value in explaining consumer behavior. b. that consumers are not identical. c. tastes and preferences should not be included in any discussion of consumer choice. d. tastes and preferences among consumers are quite similar. e. that if consumers weren't identical, economic theory would not be able to provide insight into consumer behavior.
What shape of LRAC curve indicates that any company that is producing about the same number of units shown in the middle of the curve will be able to compete on costs?
a. Flat-bottomed curve b. U-shaped curve c. Curve trending down from left to right d. Curve trending up from left to right
A monopolist faces a marginal revenue curve that is below the demand curve, resulting in the production of an allocatively efficient quantity
a. True b. False Indicate whether the statement is true or false