Other things constant, a decrease in consumer income will do which of the following?
What will be an ideal response?
Decrease the demand for large-screen television sets.
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Refer to Table 20-17. Looking at the table above, real average hourly earnings in 2015 were
A) $3.67. B) $5.63. C) $10.24. D) $11.37.
An increase in investment spending would cause the FE line to
A) shift to the right. B) shift to the left. C) remain unchanged. D) remain unchanged if Ricardian equivalence holds; otherwise, shift to the right.
Which of the following is NOT a true statement about the Lorenz curve?
A) The Lorenz curve includes both money income and income in kind. B) The Lorenz curve does not include unreported income obtained from the underground economy. C) The Lorenz curve does not consider different sizes of households. D) The Lorenz curve does not consider age differences among wage earners.
Assume the short-run average total cost for a perfectly competitive industry decreases as the output of the industry expands. In the long run, the industry supply curve will:
a. have a positive slope. b. have a negative slope. c. be perfectly horizontal. d. be perfectly vertical.