The vertical intercept of the consumption function that represents the portion of consumption expenditure not associated with a level of disposable income is known as:
A. zero income intercept.
B. disposable income intercept.
C. autonomous consumption.
D. automatic consumption line.
Answer: C
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If the Fed's monetary policy reaction function does not change, then when inflation decreases the Fed responds by ________ the real interest rate, which ________ consumption and investment spending, which ________ output.
A. decreasing; increases; increases B. decreasing; decreases; decreases C. increasing; decreases; decreases D. increasing; increases; decreases
Given the scenario described, if the market price of hammers increased from $9 to $13:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. producer surplus would increase for each producer. B. producer surplus would increase only for House Depot. C. producer surplus would remain unchanged for Bob's Hardware. D. producer surplus would increase by $4 for Lace Hardware.
The "law" of diminishing returns rests on the "law" of variable input proportions
a. True b. False Indicate whether the statement is true or false
As of 2014, the poverty gap in the U.S. was roughly
A. $16 billion. B. $96 billion. C. $8.62 trillion. D. $862 billion.