Explain the difference between a movement along the consumption schedule and a shift in the consumption schedule.
What will be an ideal response?
A movement from one point to another on the consumption schedule is a change in the amount consumed. It is caused solely by a change in disposable income. By contrast, a shift in the consumption schedule is the result of a change in one of the non income determinates of consumption such as a change in wealth, expectations, taxation, or household borrowing. If a household decided to consume more at each level of disposable income, the consumption schedule will shift upward.
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Oligopolistic industries are characterized by:
A. a few dominant firms and substantial entry barriers. B. a few dominant firms and no barriers to entry. C. a large number of firms and low entry barriers. D. a few dominant firms and low entry barriers.
Discrimination exists when a man and a woman with the same levels of education earn different incomes.
Answer the following statement true (T) or false (F)