Total planned consumption
a. exceeds total income at very low levels of output.
b. is always less than total income.
c. exceeds total income at very high levels of output.
d. always equals total income.
a. exceeds total income at very low levels of output.
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Firms in perfectly competitive markets: a. are price takers
b. are price makers. c. influence price by varying the quality of output. d. sell heterogeneous products.
In the real economy, income taxes are generally proportional or progressive
What will be an ideal response?
The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($940); personal consumption expenditures ($4,920); imports ($170); exports ($133); gross private domestic investment ($640). What is GDP in this economy?
a. $6,633 billion b. $6,463 billion c. $6,500 billion d. $6,537 billion
Suppose you know that at the current level of production average total cost equals marginal cost, then you know that it is also true that:
A. fixed costs are zero. B. average fixed costs are increasing. C. average total cost will decrease if production is increased. D. average total cost is minimized at the current level of output.