What is the most powerful influence determining the level of national income equilibrium? Unlike Alfred Marshall who used the scissors metaphor to show that both supply and demand are equally involved in determining equilibrium price, Keynes argued that
a. aggregate expenditure is the most powerful influence on national income determination
b. aggregate supply is the most powerful influence on national income determination
c. aggregate saving is the most powerful influence on national income determination
d. government expenditure is the most powerful influence on national income determination
e. consumption is the most powerful influence on national income determination
A
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Technically speaking, when the firm's output level is zero, its total revenue equals
a. zero b. its fixed cost c. its variable cost d. its marginal revenue e. its average revenue
Which of the following observations is not true of a budget line?
a. It indicates what choices are available to the consumer. b. It is a curve of constant expenditure. c. Its slope reports the market terms on which the consumer can trade one good for another. d. It helps examine the consumer's preferences.