A Decline in Disposable Income

question 92

Multiple Choice

A decline in disposable income

• A)increases consumption by moving upward along a specific consumption schedule.
• B)decreases consumption because it shifts the consumption schedule downward.
• C)decreases consumption by moving downward along a specific consumption schedule.
• D)increases consumption because it shifts the consumption schedule upward.

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Definitions:

Productivity

The measure of the efficiency of production, often expressed as the ratio of output to inputs used in the production process.

Labor Force

The total number of people who are able and willing to work, either employed or actively seeking employment.

Technology

The use of scientific understanding for pragmatic objectives, particularly within the industrial sector.

Marginal Productivity

The additional output that is produced by adding one more unit of a specific factor of production, while other factors are held constant.