Consumption is
A. positively related to household income and wealth, interest rates, and households' expectations about the future.
B. determined only by income.
C. positively related to household income and wealth and households' expectations about the future, but negatively related to interest rates.
D. negatively related to household income and wealth, interest rates, and households' expectations about the future.
Answer: C
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In a small country, the adult population is 10,000. In that country, 7,000 people are in the labor force and 6,300 people are employed. The unemployment rate equals
A) 0.63 percent. B) 7 percent. C) 10 percent. D) an undetermined amount given the lack of information.
Technology is:
A) knowledge that can be applied to the production of goods and services. B) generally unlimited in modern economies. C) a graphical illustration of the alternative combinations of goods and services an economy can produce. D) the resources the economy has available to produce goods and services.