Question

Evaluate the following statement. A family with an $120,000 annual income can purchase twice the amount...

Evaluate the following statement.

A family with an $120,000 annual income can purchase twice the amount of goods and services as a $40,000 family.

True

False

True or False: Annual money income is not always a good measure of economic status.

True

False

Homework Answers

Answer #1

1) The given statement is 'False'

This is because , the amount that is spent depends of Marginal Propensity to Consume where according to MPC , one can spend more than double or less than double for a $40,000

Therefore 'False' is the answer to this question

The given statement is True and this is because even a person having less annual income can have more assets even with less income and this may trigger wrong results.

Therefore 'False' is the answer to this question

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 1 The poverty rate is the level of income for each family size, below which...
Question 1 The poverty rate is the level of income for each family size, below which each family is considered to be in poverty. True False Question 2 The negative income tax is designed to collect taxes from high income groups and distribute to lower income groups. True False Question 3 The diminishing marginal product refers to the property whereby the marginal product of an input declines as the quantity if the input increases. True False Question 4 Capital refers...
Prepare a common-size income statement (component percentages) for the following income statement. Dollar Amount Sales revenue...
Prepare a common-size income statement (component percentages) for the following income statement. Dollar Amount Sales revenue $200,000 Cost of goods sold $80,000 Gross profit $120,000 Operating expenses $101,000 Interest expense $4,000 Income before income tax $15,000 Income tax expense (rate 20%) $3,000 Net income
Are the following statement true or false? (a) If consumer likes Bundle a at least as...
Are the following statement true or false? (a) If consumer likes Bundle a at least as much as Bundle b, then consumer is weakly prefer a to b. (b) An indifference curve is the set of all bundles of goods that a consumer views as being equally desirable. (c) The demand curve is always sloping either downward or upward. (d) Consumer well-being from a good is the benefits a consumer gets from consuming that good in excess cost. (e) Monopoly...
Are the following statement true or false? (a) If consumer likes Bundle a at least as...
Are the following statement true or false? (a) If consumer likes Bundle a at least as much as Bundle b, then consumer is weakly prefer a to b. (b) An indifference curve is the set of all bundles of goods that a consumer views as being equally desirable. (c) The demand curve is always sloping either downward or upward. (d) Consumer well-being from a good is the benefits a consumer gets from consuming that good in excess cost. (e) Monopoly...
Analyze, comprehend, and evaluate the following statements and write TRUE if the statement is correct and...
Analyze, comprehend, and evaluate the following statements and write TRUE if the statement is correct and FALSE if it is wrong. Unpaid utility bills when not adjusted will understate liability account and overstate the net income (T/F)
True, False or uncertain?  Explain whether each of the following statement is true, false or uncertain. Start...
True, False or uncertain?  Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. a. Nominal interest rates are always higher than real interest rates. Answer b. If the lockdown measure due to a further...
Answer whether the statement is True or False or Uncertain. EXPLAIN in detail. According to the...
Answer whether the statement is True or False or Uncertain. EXPLAIN in detail. According to the wealth substitution effect, private saving increases due to social security taxes. Government’s health care program can solve both moral hazard and adverse selection problems. The only reason why countries have social security is to improve the economic status of the aged. As education is a private good, the government should not provide it. Individuals always prefer cash-transfers to in-kind transfers.
30. What can a student in college do to increase demand for his or her labor...
30. What can a student in college do to increase demand for his or her labor services? a. Nothing, there is no way individuals can affect demand for their own services. b .He or she should quit school and look for a job. c. He or she should move to a state with a large population. d. He or she should increase his or her marginal product in producing valuable goods or services. 31. Firms in oligopoly can achieve an...
STATE whether the statement is True or False or Uncertain. EXPLAIN in detail. According to wealth...
STATE whether the statement is True or False or Uncertain. EXPLAIN in detail. According to wealth substitution effect, private saving increases due to social security taxes. Government’s health care program can solve both moral hazard and adverse selection problems. The only reason why countries have social security is to improve the economic status of the aged. As education is a private good, government should not provide it. Individuals always prefer cash-transfers to in-kind transfers.
1. Statement 1: "Franchising can be an excellent way for corporate headquarters to get a franchisee...
1. Statement 1: "Franchising can be an excellent way for corporate headquarters to get a franchisee to put in the amount of effort they desire. This approach is often limited in use if the franchise faces enormous uncertainty about the profit the franchise will earn." Statement 1: "Franchising is difficult to use when the contribution to profit of an individual employee is impossible to measure." Group of answer choices Both statements are false. Statement 1 is true, but 2 is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT