Most economists believe that a family bases its spending decisions on its transitory income
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Foreign direct investment is
A) the purchase of less than 10 percent of the shares of ownership in a company in another country. B) the purchase of more than 10 percent of the shares of ownership in a company in another country. C) the diversification of purchasing shares in many companies in one country so that risk is kept to a minimum. D) the diversification of purchasing shares in one company in many countries so that risk is kept to a minimum.
The demand for a pack of gum is ______________ than is the demand for a steak because _______________.
A. less price elastic; a pack of gum requires a smaller portion of one's income. B. more price elastic; a pack of gum requires a smaller portion of one's income. C. less price elastic; a pack of gum is more of a luxury. D. more price elastic; a pack of gum is more of a luxury.
By holding so much in foreign currency reserves, China is risking
A. A default on its bonds. B. Recession. C. Inflation. D. Deflation.
Marginal cost is equal to average variable cost
A) when average variable cost is at its minimum value. B) when marginal cost is at its minimum value. C) when average variable cost is getting smaller. D) when average variable cost is getting larger.