Exhibit 6-25 Which of the Following Is True of Exhibit

question 36

Multiple Choice

Exhibit 6-25 Which of the following is true of Exhibit 6-25?

• A)Points a, c, and e would all cost the same amount to purchase.
• B)Points a, b, and c all represent the same level of utility, which is higher than that represented by points d, e, and f.
• C)Points a, c, and e all represent the same level of utility, which is lower than that represented by point b.
• D)Points a, c, and e all represent the same level of utility, which is higher than that represented by point b.
• E)Point d represents a level of utility higher than any other point on the graph.

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Definitions:

APC

Average Propensity to Consume, which is the fraction of income that a person or population spends rather than saving.

APS

The Average Propensity to Save, which is the proportion of total income that is saved rather than spent on consumption.

APC

It stands for Average Propensity to Consume, indicating the fraction of income that is spent on consumption rather than savings.

APS

Average Propensity to Save, which is the fraction of income that is saved rather than spent on consumption, calculated as savings divided by disposable income.