Simon Kuznets's research in his National Income and Its Composition showed that
a. Keynes's absolute income hypothesis is empirically correct
b. budget deficits crowd out consumption spending
c. a nation's MPC tends to remain fairly constant regardless of the absolute level of national income
d. as national income increases, consumption spending increases, but by diminishing amounts
e. consumption and income cannot be linked in any meaningful fashion
C
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Since 1950, the standard of living in the United States has:
A. decreased when measured by output per person, but increased when measured by total output. B. decreased when measured by both total output and output per person. C. increased when measured by output per person, but decreased when measured by total output. D. increased when measured by both total output and output per person.
The figure above shows that to make the price support work, the government buys ________ million tons of sugar beets
A) 10 B) 20 C) 30 D) 5 E) 15
Suppose an economy produces milk and honey, and milk is plotted along the horizontal axis of the production possibilities frontier. The MRT is 2 at the current point of production
If the amount of milk produced is reduced by two units in order to produce one more unit of honey, then: A) the new point of production lies above the production possibilities frontier. B) the new point of production lies on the production possibilities frontier. C) the new point of production lies below the production possibilities frontier. D) we cannot determine where the new point of production lies relative to the production possibilities frontier.
As rational consumers, you attempt to maximize utility by allocating your time so that the expected marginal utility of the last unit of time spent in each activity is different
Indicate whether the statement is true or false