The ratio of consumption to income is known as ________
A) the average propensity to consume
B) the borrowing constraint
C) the marginal propensity to consume
D) subprime accommodation
A
You might also like to view...
Money's function as a medium of exchange means that
A) money is a common denominator for expressing the prices of goods and services. B) money can be used to store wealth. C) money serves as an acceptable means of payment. D) money requires a double coincidence of wants.
Each point on a demand curve shows
A) the consumer surplus received from purchasing a given quantity of a product. B) the legally determined maximum price that sellers may charge for a given quantity of a product. C) the willingness of consumers to purchase a product at different prices. D) the economic surplus received from purchasing a given quantity of a product.
A current account deficit is
A) good because a country wants to own the others. B) bad because every country should have a surplus. C) good because it allows to smooth consumption. D) it does not matter.
Which of the following statements describes the presence of diminishing returns? All else equal,
a. Marginal product is constant as output increases b. Marginal product is falling as output increases c. Marginal product is rising as output increases d. Marginal product is zero