If an Economist Wants to Make a Prediction About the Effects

question 38

Multiple Choice

If an economist wants to make a prediction about the effects of a change in disposable income on the change in consumption spending based on historical data, she must assume that

• A)the future will closely resemble the past.
• B)consumption and disposable income will be negatively related.
• C)the consumption function will have a downward slope.
• D)as disposable income increases, consumer spending will remain constant.

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Definitions:

Enzymes

Biological catalysts that speed up chemical reactions in living organisms by lowering the activation energy.

Enzyme Function

The role enzymes play in accelerating chemical reactions in biological systems without being consumed in the process.

Lock-and-key Model

A model explaining enzyme specificity, where the enzyme's active site (lock) perfectly fits the substrate (key), facilitating the chemical reaction.

Energy Of Activation

The minimum energy that must be supplied to reactants to initiate a chemical reaction.