The marginal propensity to consume (MPC) is
a. the change in consumption divided by the change in disposable income
b. total consumption divided by total disposable income
c. the change in disposable income divided by the change in consumption
d. total disposable income divided by total consumption
e. the change in disposable income minus the change in consumption
A
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Majority-rule voting
A) is economically efficient. B) is never economically efficient. C) may or may not be efficient, depending upon the preferences of the voters. D) is economically efficient only in a democracy. E) is economically efficient only if there is a median voter.
If a perfectly competitive firm is producing at a quantity at which MC < AVC, it cannot be maximizing profit in the short run
a. True b. False
Which economic concept is the closest to the saying "There's no free lunch"?
a. Specialization b. Unlimited wants c. Underutilization of resources d. Opportunity costs e. Overutilization of resources
The four-firm concentration ratio for an industry is
A. the number of firms in the industry, divided by four. B. the share of industry output sold by the four largest firms in the industry. C. the percentage of total industry profits claimed by the four largest firms. D. the share of industry output sold by the fourth largest firm in the industry.