The Consumption Function Used in the Textbook Is Based on a Number

question 95

Multiple Choice

The consumption function used in the textbook is based on a number of assumptions.Given these assumptions,which of the following statements is true?

• A)Below a certain level of income,APC > 1 and MPC < 0.
• B)The MPC and APC are always less than unity.
• C)As income rises,the MPC falls and the APC rises.
• D)The MPC is greater than zero and less than one,and the APC falls as income rises.
• E)The APC is greater than zero and less than one,and the MPC falls as income rises.

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Definitions:

Instinctive Behavior

Actions or reactions that an organism is born with, such as reflexes and fixed action patterns, that are not learned.

Sign Stimulus

A distinctive environmental event that can activate the innate releasing mechanism (IRM) and release a fixed action pattern.

Fixed Action Pattern

A sequence of innate, unchangeable behaviors that is triggered by a specific stimulus and will be carried out to completion once started.

Action Specific Energy

A concept in ethology suggesting that certain behaviors build up energy within an organism, which then seeks release through specific actions.