Author Question: A decrease in net wealth will _____. a. shift the consumption function downward b. make the ... (Read 31 times)

PhilipSeeMore · **on:** Jun 30, 2018

A decrease in net wealth will _____.
a. shift the consumption function downward
b. make the consumption function steeper
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

When consumption of a good or service produces benefits or costs that are not reflected in the market price for the good, this is known as a(n):
a. externality.
b. common pool problem.
c. nonexcludable resource.
d. public good.