An economy's production function is Y = A , and the economy's total output in equilibrium is 800 billion. Total capital income in this economy is ________.
A) 200 billion
B) 25 billion
C) 750 billion
D) 267 billion
E) none of the above
Question 2
The theory of intertemporal choice, and the life-cycle and permanent income hypotheses have in common the assumption that ________.
A) consumption decisions are affected by current expectations about lifetime resources
B) consumption decisions are based on all available information
C) current income, rather than expected income, has the greater influence on consumption decisions
D) decisions to borrow and save are influenced much more by immediate circumstances than by long-term consequences
When the exhaust is lean, the output of a zirconia oxygen sensor is below 450 mV.
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