Milton Friedman first proposed the hypothesis that individuals consume a fraction of their expected, or ________, income
A) disposable
B) net
C) attainable
D) permanent
E) life-cycle
D
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Barriers to entry serve to limit the number of firms that operate in a particular market and, as such, reduce the amount of total profit earned in the market
Indicate whether the statement is true or false
Subprime borrowers ________
A) are those individuals who owe more on their mortgage than the value of their home B) possess a relatively low FICO score C) rely on mortgage-backed securities to support their mortgage applications D) are those with an income level below the value of their mortgage
When federal outlays exceed revenues, the budget is said to be in surplus
Indicate whether the statement is true or false
Why is it rational for a consumer to begin buying a second type of good after buying a certain amount of the first type of good?
a. The price of the first type of good will continue to increase with each successive purchase. b. The total satisfaction gained from the first type of good will continue to decline with each successive purchase. c. The marginal satisfaction gained from the first type of good will continue to decline with each successive purchase. d. The price of the second type of good will continue to decrease with each successive purchase.