Unemployment insurance cannot eliminate the national costs of lost output due to unemployed labor.

Identify the correct statement with respect to consumption and saving function

a. Both the consumption function and the saving function have negative slopes. b. As disposable income declines, consumption and saving increase. c. The consumption function has a negative slope while the saving function has a positive slope. d. As disposable income rises, consumption and saving increases. e. The consumption function has a positive slope while the saving function has a negative slope.

Billy is deciding whether to watch TV at home or go spend time with his friends. If Billy decides to stay home, we can conclude that:

A. Billy is a homebody and never goes out. B. Billy will get more utility from watching TV than spending time with his friends. C. Billy will regret not spending more time with his friends. D. Billy's revealed preference is to always be alone.