If you spend more of your income on consumption goods, which of the following will occur?
A) Economic growth will be stimulated.
B) For every dollar you spend on consumption, real GDP will fall by a dollar.
C) Investments in education will rise.
D) The production of investment goods will fall.
D
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Which of the following statements about a circular flow model is false?
A) Producers are buyers in the factor market and sellers in the product market. B) Households are neither buyers nor sellers in the input market. C) Households are buyers in the product market. D) Producers are buyers in the factor market.
Consumer equilibrium exists when:
a. the marginal utility of each good and service consumed is equal. b. the total utility of each good and service consumed is equal. c. the marginal utility of each good and service consumed equals its price. d. ratio of marginal utility to price for all goods and services is equal.