Which of the Following Will Not Tend to Shift the Consumption

question 122

Multiple Choice

Which of the following will not tend to shift the consumption schedule upward?

• A) a currently small stock of durable goods in the possession of consumers
• B) the expectation of a future decline in the consumer price index
• C) a currently low level of household debt
• D) the expectation of future shortages of essential consumer goods

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Definitions:

Implicit Costs

The opportunity costs that arise from using resources that could have been employed in an alternative use, not directly paid in a financial form.

Normal Profit

The minimum profit necessary for a company to remain in business, equal to the opportunity cost of capital and entrepreneurial effort not invested elsewhere.

Entrepreneur's Talent

The unique set of skills, creativity, and determination that an entrepreneur brings to identifying opportunities and building a business.

Implicit Costs

Implicit costs refer to the opportunity costs of using resources that a company already owns, without any direct payment, for its own production purposes.