Which of the Following Is True

question 27

Multiple Choice

Which of the following is true?
I. 1 − MPS = MPC where MPS = marginal propensity to save and MPC = marginal propensity to consume.
II. personal saving + consumption = gross income
III. ∆disposable income = ∆saving + ∆consumption where ∆ = change in

• A) I, II, and III
• B) I and II only
• C) I and III only
• D) II and III only

Describe the situational and psychological factors that contribute to or inhibit altruistic behavior.

Analyze the dynamics of group behavior, including leadership, decision making, and social loafing.

Understand the concept of social comparison theory.

Identify and analyze group norms.

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Definitions:

Commission

A fee or percentage of a transaction paid to an agent or employee for facilitating or completing a sale.

Accrued Interest

Interest that has accumulated but remains unpaid.

360-Day Year

A financial convention that simplifies interest calculation by assuming a year has 360 days.

Commission

A fee paid for services, usually a percentage of the total cost.