How much of each dollar spent by a consumer ultimately becomes income to someone else?
A. more than one dollar
B. It depends on how much labor was needed to produce the good that the consumer buys.
C. one dollar
D. It depends on how much the cost there is in the distribution channel that delivers the good from the manufacturer to the consumer.
Answer: C
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Which of the following statements is (are) incorrect?
a. Consumption plays a central role in the Keynesian theory of income determination b. Consumer expenditure is the largest component of aggregate demand c. In recent years, consumption has totaled between 60 and 70 percent of GDP d. Keynes believed that investment was largely determined by expectations e. all of the above are correct
What role does a company like J.D. Power (which provides product satisfaction reviews) serve?
A) It provides a screening test. B) It provides a signal of quality. C) It reduces moral hazard. D) It reduces costs of giving surveys.