Katie Is Surprised to Find a Copy of the October

question 56

Multiple Choice

Katie is surprised to find a copy of the October edition of the Punk Rocker's weekly in her mailbox that she has not ordered.A letter with the magazine says that if she does not send the magazine back to the publisher, Spikes Pty Ltd, within 14 days, her inaction will be construed to be acceptance of their offer of a year's subscription to the magazine at $35 a month.Three weeks later Katie realises she has not returned the magazine.What should Katie do next?

• A)Pay the subscription price.
• B)Return the magazine anyway.
• C)Keep the magazine safe, and give it to Spikes if they come to collect it.
• D)Kate can do what she wants with the magazine; it belongs to her.

Understanding the concepts of disposable income, consumption, saving, and their respective relationships.

Identifying the contributions of key economists to the development of consumption function theories.

Analyzing the trends in consumer spending on different categories of goods and services over time.

Comprehending the importance of the marginal propensity to consume (MPC) and marginal propensity to save (MPS) and their relation.

---

Definitions:

Subsist

To sustain or provide for oneself, especially at a basic level.

Well Paying Jobs

Positions that offer a salary higher than the average, providing financial security and benefits.

Welfare

Government-provided support programs designed to ensure the basic living standards of citizens, including healthcare, food assistance, and unemployment benefits.

Food Stamps

A government-issued voucher program designed to help low-income families purchase food, traditionally as part of welfare support.