If You Produce a Graph with Consumption Spending on the Vertical

question 177

Multiple Choice

If you produce a graph with consumption spending on the vertical axis and disposable income on the horizontal axis, the relation between consumption and income will

• A)be inverse.
• B)be transcendental.
• C)shift unpredictably.
• D)be direct.

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Definitions:

Supply of Labor

The total amount of labor, in terms of hours or the number of workers, that is available for employment in the economy at a given wage rate.

Opportunities

Situations where it's possible to perform an action that could lead to an improvement in one's situation.

Rational Employers

Employers who make hiring and firing decisions based on the optimization of productivity and cost-effectiveness.

Margin

The difference between the selling price of a product and the cost of producing it, often expressed as a percentage of the selling price.