The slope of the consumption function is equal to
a. the change in consumption divided by the change in disposable income.
b. the change in consumption divided by the change in personal income.
c. the change in disposable income divided by the change in consumption.
d. the change in national income divided by the change in consumption.
a. the change in consumption divided by the change in disposable income.
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If the price level rises from 100 to 110 then the inflation rate is
A) 100 percent. B) 1.0 percent. C) 10.0 percent. D) 110 percent. E) None of the above answers is correct.
People who attend college for four years in order to equip themselves to earn higher incomes in later life are
A) discounting the future at a higher rate than do people who don't attend college. B) giving up future satisfaction for the sake of current satisfaction. C) ignoring the fact that future income has less value than current income. D) investing in human capital. E) revealing a high rate of time preference.
Refer to Figure 4-8. What is the value of the deadweight loss after the imposition of the ceiling?
A) $50,000 B) $125,000 C) $175,000 D) $260,000
Complete the following sentence. Full employment
A) occurs when all unemployment is frictional and discouraged. B) occurs when all unemployment is cyclical and structural. C) occurs when there is zero unemployment. D) occurs when there is zero frictional unemployment. E) occurs when there is zero cyclical unemployment.