When real consumption expenditure is plotted against real disposable income the resulting relationship is
a. very weak.
b. positive and very curvi-linear.
c. positive and very close to linear.
d. negative and very close to linear.
e. virtually flat.
C
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Sophia is an architect and she is trying to decide whether to hire Jacob, a draftsman, to assist with her work. Sophia could hire Jacob at $20 per hour but it would take him three times as long to complete a task as it takes Sophia. Sophia is able to earn $90 per hour and has more architectural jobs than she is able to handle. Which of the following is true?
a. Sophia should not hire Jacob because it would be faster for her to do the work herself. b. Sophia should do the drafting work herself because she has the lower opportunity cost. c. Jacob should be hired at the $20 per hour wage rate. d. Jacob should be hired, but only if he is paid more than $30 per hour.
Enron's bankruptcy is much more troubling than Kmart's or Global Crossing's because
A. Enron was much bigger. B. Enron had more stockholders. C. Enron had more employees. D. Enron's trouble resulted from corrupt accounting practices.