A Country's ________ Shapes Its Product and Service Needs, Income

question 114

Multiple Choice

A country's ________ shapes its product and service needs, income levels, and employment levels.

• A) international trade system
• B) income distribution
• C) industrial structure
• D) political structure
• E) foreign exchange system

---

Definitions:

Permanent Income Hypothesis

A theory suggesting that people's consumption choices are based on their long-term average income rather than their current income.

Tax Cut

A reduction in the amount of taxes imposed by a government, aiming to stimulate economic growth or achieve other policy objectives.

Disposable Income

After income taxes are taken out, disposable income represents the funds available to a household or individual for saving and spending purposes.

APS

Average Propensity to Save, which is the fraction of total income that is saved by an economy or individual.