If Consumption Is $8,000 When Disposable Income Is $10,000, the Marginal

question 76

Multiple Choice

If consumption is $8,000 when disposable income is $10,000, the marginal propensity to consume

• A)is 0.50.
• B)is 0.75.
• C)is 0.80.
• D)is 1.25.
• E)cannot be determined from the information given.

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Definitions:

Unrealistic Optimism

The tendency of individuals to believe that they are less likely to experience negative events than others.

Comparing

The act of evaluating two or more items, individuals, or situations in relation to each other to identify similarities or differences.

Financially

Pertaining to money or economic matters, often used to describe someone's fiscal status or decisions impacting monetary resources.

Self-Reference Effect

The tendency to better remember information related to oneself compared to information that is not personal.