The Most Important Determinant of a Household's Consumption Spending Is

question 33

Multiple Choice

The most important determinant of a household's consumption spending is:

• A)its disposable income.
• B)the in-kind transfers received by the household.
• C)the level of education of the members of the household.
• D)the interest rate.
• E)the ratio of wage to non-wage income of the household.

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Definitions:

Agricultural Subsidies

Government payments to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such goods.

Tariff

A tax imposed on imported goods, intended to increase the price of foreign products to protect domestic producers.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time frame.

Comparative Advantage

The capacity of a nation or company to manufacture a specific good or service with a lower opportunity cost compared to its rivals.