Author Question: A decrease in disposable income will: a. shift the consumption function upward. b. shift the ... (Read 56 times)

kshipps · **on:** Jun 30, 2018

A decrease in disposable income will:
a. shift the consumption function upward.
b. shift the consumption function downward.
c. cause an upward movement along the consumption function.
d. cause a downward movement along the consumption function.
e. make the consumption function flatter.

Question 2

Which of the following best describes social costs?
a. The external costs borne by other members of society, ignoring the private costs to market participants.
b. The sum of external costs and private costs.
c. External costs minus private costs.
d. Private costs minus external costs.