The ratio of a change in consumption to a change in disposable income is the:
a. consumption function.
b. propensity to consume.
c. average propensity to consume.
d. extra propensity to consume.
e. marginal propensity to consume.
e
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Consumer surplus is the
a. amount of a good consumers get without paying anything. b. amount a consumer pays minus the amount the consumer is willing to pay. c. amount a consumer is willing to pay minus the amount the consumer actually pays. d. value of a good to a consumer.
The making and selling of a pencil for ten cents would likely NOT be possible, but for
A. the production possibilities curve. B. the division of labor. C. absolute advantage. D. relative advantage.
Suppose you know that a certain country with a growing population has experienced steady growth in real per capita GDP. What do you then also know to be TRUE?
A. This country exports more than it imports. B. The distribution of income in this country has become relatively more equal. C. The growth in goods and services produced and exchanged in the marketplace has outpaced the growth in population. D. This country imports more than it exports.
Suppose that white workers are getting paid $21/hour, while similarly-productive African-American workers are getting paid $18/hour. A prejudiced white employer with a discrimination coefficient of $24/hour will:
A. Hire African-Americans only if their wage rate falls to $3/hour B. Hire African-American workers C. Not hire African-Americans at all, even if they offer to work for free D. Not hire African-Americans, unless they work for free