If an economist wants to make a prediction about the effects of a change in disposable income on the change in consumption spending based on historical data, she must assume that
a. the future will closely resemble the past.
b. consumption and disposable income will be negatively related.
c. the consumption function will have a downward slope.
d. as disposable income increases, consumer spending will remain constant.
a
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For negotiations to eliminate an externality to be successful
A. one person must be willing to benefit by less than the cost of the externality. B. one person must benefit by double the cost of the externality. C. both parties must agree on a mutually beneficial trade. D. both parties must have property rights.
When every good or service is produced up to the point where the last unit provides ________, allocative efficiency occurs
A) a marginal benefit to society greater than the marginal cost of producing it B) a marginal benefit to society equal to the marginal cost of producing it C) a marginal benefit to society less than the marginal cost of producing it D) a marginal benefit to society equal to zero
Which of the following statements is least accurate about the period between the end of World War I and 1930?
a. African Americans migrated in large scale from the north to the south. b. There was a significant increase in activity by the Ku Klux Klan. c. A Constitutional Amendment gave women the right to vote. d. A Constitutional Amendment prohibited the manufacture, distribution, and sale of intoxicating liquor.
As long as marginal cost is less than average variable cost:
a. both average total costs and average variable costs will be falling. b. average total costs will be falling but average costs may be rising or falling. c. average fixed costs are rising. d. average total costs are falling but average fixed costs may be rising.