Which of the Following Will Cause an Increase in Current

question 43

Multiple Choice

Which of the following will cause an increase in current consumption?

• A) An increase in financial wealth.
• B) An increase in current disposable income.
• C) An increase in human wealth.
• D) All of the above.
• E) Both A and B.

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Definitions:

Increasing Cost Industry

An industry in which production costs rise as output increases, often due to factors like limited resources or increased demand for inputs.

Price-taker Firm

A company in a market where the individual firm has no control over the price of its product and must accept the prevailing market price.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good changes as the level of production is varied.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.