The average propensity to consume (APC) is
A. the percentage of real disposable income consumed.
B. the percentage of additional real disposable income that will go toward additional consumption spending.
C. the percentage of real disposable income saved.
D. the rate at which real consumption spending changes over time.
Answer: A
You might also like to view...
The people who immediately benefit from a minimum wage are
A) employers who now pay the minimum wage. B) those people who enter the labor force to search for minimum wage jobs. C) the workers who retain their jobs after enactment of the minimum wage. D) everyone, both demanders and suppliers, because the minimum wage benefits everyone. E) all workers.
Investment demand is downward sloping because as the interest rate decreases,
A) each project's internal rate of return decreases. B) each project's internal rate of return increases. C) more projects will have an internal rate of return that exceeds the interest rate. D) more projects will have an internal rate of return that is less than the interest rate.
The two basic types of government regulation are
A) regulation of natural monopolies and regulation of cartels. B) economic regulation and industry regulation. C) social regulation and labor law. D) social regulation and economic regulation.
An understanding of opportunity costs is important to understanding: a. how to calculate the total revenue generated by a firm. b. how to assess the economic profitability of a firm
c. How to calculate the tax liability of a firm. d. how accountants calculate accounting profits.