If Your Income Increases by $1,500 and You Only Consume

question 17

Multiple Choice

If your income increases by $1,500 and you only consume $900 of it,your marginal propensity to consume would be equal to

• A) 600.00.
• B) 0.50.
• C) 0.75.
• D) 0.40.
• E) 0.60.

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Definitions:

Apple Pickers

Workers engaged in the agricultural practice of harvesting apples from orchards.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers matches the quantity of labor supplied by workers, resulting in a balanced labor market.

Northern United States

The region of the United States located in the northern part of the country, often characterized by distinct seasonal weather patterns and historical industrial development.

Labor Market

The marketplace where labor services are offered and demanded, determining employment levels and wage rates.