The Marginal Propensity to Import Is the Fraction of Additional

question 207

Multiple Choice

The marginal propensity to import is the fraction of additional:

• A) imports that is earned as income.
• B) consumption that is imported.
• C) imports that is consumed.
• D) income that is spent on imports.

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Definitions:

AVC

Average Variable Cost is the total variable cost per unit of output, which is calculated by dividing total variable costs by the quantity of output.

MC

Marginal Cost, the increase or decrease in the total cost of a production run for making one additional unit of an item.

Long Run

A period in economic analysis where all factors of production can be varied, and no inputs are fixed.

Shut Down

The process of ceasing operations, often temporarily, due to various reasons like lack of demand, financial trouble, or external circumstances.