After years of hard work in the field of macroeconomics, you win the Nobel Prize in economics (currently about $1.5 million). What is the most likely effect of this prize on your consumption function?
a. It will shift downward temporarily.
b. It will shift upward temporarily.
c. It will shift downward permanently.
d. It will shift upward permanently.
e. none of the above
d
You might also like to view...
Clifford lives by the motto "Eat, drink, and be merry today, for tomorrow doesn't matter"
If today's consumption is represented by "x" and tomorrow's consumption is represented by "y," then which of the following best represents Clifford's utility function? A) U = x - y B) U = x/y C) U = x D) U = y
A decrease in income will shift the demand curve for an inferior good to the right
a. True b. False Indicate whether the statement is true or false
The opportunity cost of government purchases is greater when financed by borrowing than when financed by taxes.
Answer the following statement true (T) or false (F)
Pure public goods involve positive externalities.
A. True B. False C. Uncertain