Chap 27 Quiz E01-Spring, 2011 w ans

Chap 27 Quiz E01-Spring, 2011 w ans - Chapter 27 Quiz Econ...

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Chapter 27 Quiz Econ 2301-Spring, 2011 Student________________________ Date:_____________________ 1. Disposable income equals: A . Consumption plus saving B. Consumption minus saving C. Saving times consumption D. Saving divided by consumption 2. The amount of consumption in an economy depends: A. Inversely on the level of disposable income B. Directly on the level of disposable income C. Inversely on the level of saving D. Directly on the rate of interest 3. When the consumption schedule is plotted on a graph: A. Consumption is on the horizontal axis and saving is on the vertical axis B. Consumption is on the vertical axis and saving is on the horizontal axis C. Consumption is on the horizontal axis and disposable income is on the vertical axis D. Consumption is on the vertical axis and disposable income is on the horizontal axis 5. As disposable income decreases, consumption: A. And saving both increase B. And saving both decrease C. Increases and saving decreases D. Decreases and saving increases
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6. Refer to the above graph. At income level 3, the amount of saving is represented by the line segment: A . FG B. FH C. FD D. GH 7. Refer to the above graph. At income level 3, the amount of consumption is represented by the line segment: A. FG B. FH C. FD D. GH 8. Refer to the above graph. At income level 1, the amount of dissaving is represented by the line segment: A . AB B. AC C. AD D. BC 9. Refer to the above graph. At income level 1, the amount of consumption is represented by the line segment: A. AB B. AC C. AD D. BC 10. Refer to the above graph. Disposable income equals consumption at point: A. A B. C C. D D . G 11. Refer to the above graph. The break-even level of income would be at income level: A. 0 B. 1 C. 2 D. 3
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12. Refer to the above graph. As income rises from level 1 to level 2, the amount of: A . Consumption increases and the amount of dissaving decreases B. Consumption increases and the amount of dissaving increases C. Consumption increases and the amount of saving decreases D. Consumption decreases and the amount of saving increases 13. Refer to the above graph. As income rises from level 2 to level 3, the amount of: A. Consumption increases and the amount of saving decreases B . Consumption increases and the amount of saving increases C. Consumption decreases and the amount of saving increases D. Consumption increases and the amount of dissaving increases 14. Refer to the above graph. As income falls from level 3 to level 2, the amount of: A. Consumption increases and the amount of dissaving increases B. Consumption decreases and the amount of dissaving decreases C. Consumption decreases and the amount of saving decreases D. Consumption decreases and the amount of saving increases
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This note was uploaded on 04/13/2011 for the course ECON 2301 taught by Professor Tamikasteward during the Spring '08 term at Tarrant County.

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Chap 27 Quiz E01-Spring, 2011 w ans - Chapter 27 Quiz Econ...

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