The Long-Run Marginal Propensity to Consume (Mpc) Is

question 49

Multiple Choice

The long-run marginal propensity to consume (mpc) is

• A) larger than the short-run mpc
• B) slightly smaller than the short-run mpc
• C) about half the size of the short-run mpc
• D) identical to the short-run mpc
• E) always equal to 1

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Definitions:

Final Goods

Products that have completed the manufacturing process and are ready to be used or consumed by the end-user.

Derived Demand

A demand for a commodity or service resulting from the demand for something else, typically goods or services used in the production of other goods or services.

Demand for Popcorn

The desire or consumer's willingness to purchase popcorn at various price levels.

Movie Tickets

Financial tickets purchased to gain entry to view films in theaters.