The Consumption Schedule Is Such That

question 83

Multiple Choice

The consumption schedule is such that:

• A)both the APC and the MPC increase as income rises.
• B)the APC is constant and the MPC declines as income rises.
• C)the MPC is constant and the APC declines as income rises.
• D)the MPC and APC must be equal at all levels of income.

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Definitions:

Fixed Costs

Business expenses that remain the same regardless of the level of production or sales, such as rent, salaries, or loan payments.

Variable Costs

Costs that vary directly with the level of output or production activity.

Corporate Tax Rate

The percentage of a corporation's profits that must be paid to the government as tax.

Unemployment Rate

The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.