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| 1 . |
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If household consumption spending is $5,000 when income is $7,500, its average propensity to consume is:
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| 2 . |
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According to Keynes, the APC for high-income households is higher than for low-income households.
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| 3 . |
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According to the life-cycle theory of consumption, wealth approaches zero near the end of life.
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| 4 . |
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A higher wage makes work more attractive relative to non-work activities. This is called the _____ effect.
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| 5 . |
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An unexpected increase in wealth leads to a/an:
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| 6 . |
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On balance, the data suggest that for an increase in the interest rate:
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| 7 . |
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An increase in tax rates:
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| 8 . |
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Labor-intensive technology is a technique that uses:
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| 9 . |
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The accelerator effect is the tendency for large increases in investment to generate large increases in employment.
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| 10 . |
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A firm may decide to hold excess labor when it:
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| 11 . |
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The optimal level of inventories is where the extra cost (in lost sales) from decreasing inventories is greater than the extra gain (in interest revenue and decreased storage costs).
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| 12 . |
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An unexpected decrease in inventories has a positive effect on future production.
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| 13 . |
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Okun's Law states that an increase in the unemployment rate of one percent is associated with a three percent increase in real GDP.
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