The consumption schedule shows:
A. a direct relationship between aggregate consumption and accumulated wealth.
B. a direct relationship between aggregate consumption and aggregate income.
C. an inverse relationship between aggregate consumption and accumulated financial wealth.
D. an inverse relationship between aggregate consumption and the price level.
B. a direct relationship between aggregate consumption and aggregate income.
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The midpoint formula is used to measure the elasticity of demand between two points on a demand curve
A) when demand is elastic. B) to ensure that the elasticity has a negative value. C) to ensure that we have only one value of the price elasticity of demand between two points on a demand curve. D) in special cases when the percentage change in the quantity demanded is equal to the percentage change in price.
An excise tax is a tax that is levied on
A) the value of a piece of property. B) the purchase of a given good or service. C) the value of an estate. D) that part of a person's income coming from interest payments.
John and Mary work eight hours at a bakery. John can decorate either 10 ice-cream cakes or 4 wedding cakes; Mary can decorate either 8 ice-cream cakes or 2 wedding cakes. According to this scenario
A) Mary has the absolute advantage in decorating wedding cakes. B) John has the absolute advantage in decorating wedding cakes. C) Mary has the comparative advantage in decorating wedding cakes. D) John has the comparative advantage in decorating ice-cream cakes.
Which of the following is true when an economy produces at full employment, but consumers, government, businesses, and the foreign sector do not buy all the output?
A. Inventories are depleted. B. Unemployment falls. C. The price level rises. D. There is a recessionary gap.