Describe the three basic points that Keynes made regarding consumption. Briefly explain why consumption was such a main concern in the Keynesian model
The three basic points that Keynes made about consumption are: (1 ) Consumption depends on disposable income, (2 ) Consumption and disposable income are directly related, and (3 ) any change in income will be greater than any resulting change in consumption. Consumption was a major concern for Keynes because it makes up the largest portion of total spending.
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A chain saw manufacturer can make its chain saws safer by adding a titanium chain guard to its products. Adding the titanium chain guard costs $35 per chain saw
The manufacturer estimates that this will prevent 10 injuries for every 5,000 chain saws sold and that, on average, each injury causes $15,000 of harm. The injury cost per chain saw is A) $3.00. B) $30.00. C) $37.50. D) $40.00.
An economy is said to have a comparative advantage in producing a particular good if it:
A) can produce more of all goods than another economy. B) can produce less of all goods than another economy. C) has the highest cost for producing that good. D) has the lowest cost for producing that good.