What does the marginal propensity to consume measure and how is it related to the consumption function?
What will be an ideal response?
The marginal propensity to consume, or MPC, is the change in consumption expenditure divided by the change in disposable income. The MPC tells the proportion of any change in disposable income spent on consumption expenditure. The marginal propensity to consume is equal to the slope of the consumption function.
You might also like to view...
How do the price, output, consumer surplus, economic profit, and total surplus for a single-price monopoly compare to that of a competitive industry?
What will be an ideal response?
Using Scenario 1 calculate the total cost of pollution when both steel companies are allowed to pollute only one million gallons of thermal water each but the rights to pollute are genuine property rights sanctioned and protected by the government
and therefore tradable.
The cost associated with foregoing the opportunity to employ a resource in its best alternative use is called:
A. an avoidable cost. B. a sunk cost. C. an opportunity cost. D. the user cost of capital.
Unlike budgeters in 49 states, federal officials are not required to balance the budget
Indicate whether the statement is true or false