Use the above table. Which of the following is TRUE if real disposable income is $150?

A. APC = 0.8.
B. APC is less than MPC.
C. APS = 0.2.
D. APS is less than MPS.


Answer: D

Economics

You might also like to view...

A bond is a financial security that represents

A) the portion of profits paid to shareholders. B) ownership in a corporation. C) the interest rate paid on a share of stock. D) a promise to repay a fixed amount of funds.

Economics

The time it takes for the policy actually to have an impact on the economy is called

A) the data lag. B) the recognition lag. C) the legislative lag. D) the implementation lag. E) the effectiveness lag.

Economics

Given a fixed amount of time, a decision to supply labor or not is simultaneously a decision to

A. demand goods and services or not. B. demand leisure or not. C. supply capital and land or not. D. supply leisure or not.

Economics

If the price of apples went down by 20 percent, which of the following values of the cross price elasticity for boats would be most reasonable to anticipate?

A) 0.0 B) 2.0 C) -2.0 D) -20

Economics