If We Examined the Extent of Wear and Tear in Carpeting

question 27

Multiple Choice

If we examined the extent of wear and tear in carpeting in a museum to study the popularity of exhibits,we would be employing

• A) the floor wear index.
• B) an erosion measure.
• C) an accretion measure.
• D) a reliable variable.
• E) the ecological fallacy.

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Definitions:

Marginal Propensity

The ratio of change in an economic variable, such as consumption or saving, to a change in another, like income.

Consumption Spending

The total amount of money spent by households and consumers on durable goods, nondurable goods, and services.

Income

Money received, especially on a regular basis, by an individual or business in exchange for providing labor, goods, or services, or through investing.

MPC (Marginal Propensity to Consume)

The proportion of an increase in income that is spent on consumption rather than being saved.