If an Increase in Disposable Income Causes Consumption to Increase

question 73

Multiple Choice

If an increase in disposable income causes consumption to increase from $4,000 to $10,000 and causes saving to increase from $2,000 to $4,000,it can be inferred that the MPC equals

• A)0.4.
• B)0.6.
• C)0.5.
• D)0.75.

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Definitions:

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations.

Environmental Standards

Regulatory benchmarks established to limit pollution and protect ecosystems by controlling the emissions of harmful substances and ensuring sustainable practices.

Environmentalists

Environmentalists are people or groups who are concerned with protecting the environment from pollution and destruction and advocate for sustainable and eco-friendly practices.

Sweatshops

Workplaces, often in the clothing industry, with very poor, socially unacceptable working conditions, frequently involving the exploitation of workers.