The Consumption Schedule in the Diagram Below Indicates That $\degree$ Line Intersect

question 143

Multiple Choice

The consumption schedule in the diagram below indicates that:

• A)consumers will maximize their satisfaction where the consumption schedule and 45\(\degree\)line intersect.
• B)up to a point consumption exceeds income, but then falls below income.
• C)the MPC falls as income increases.
• D)households consume as much as they earn.

Understand the difference between System I and System II thinking, including their characteristics and circumstances influencing their use.

Recognize and describe common cognitive biases and heuristics, such as confirmation bias and representativeness heuristic.

Differentiate between reasoning, judgment, problem solving, and decision making in cognitive processes.

Identify factors that influence the likelihood of engaging in System II thinking.

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A conventional or longstanding guideline or principle that is generally followed within a specific field or context.