Allocating Products with Long Lines, Using a First-Come, First-Served System

question 100

Multiple Choice

Allocating products with long lines, using a first-come, first-served system, is:

• A) the only way scarce goods can be allocated.
• B) necessary when waiting is a costless exercise.
• C) efficient, since people who are willing to wait the longest get the products.
• D) inefficient, because waiting wastes time.

Grasp the significance of the marginal propensity to consume (MPC) and save (MPS).

Analyze the variations in average propensity to consume (APC) and save (APS) across different income levels.

Identify conditions under which dissaving occurs.

Predict the impact of changes in disposable income on total consumption and saving.

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Definitions:

Discount Rate

In discounted cash flow analysis, this is the rate used to ascertain the present worth of cash flows expected in the future.

Tax Rate

The tax imposition rate on the financial gains of individuals and corporations.

Machinery

Tools, equipment, and devices that perform various tasks in the production process, often indicating the fixed assets used in manufacturing or production.

Equipment

Tangible items purchased for use in the production or supply of goods and services, not intended for sale as part of regular operations.