Table 3-41 ​

question 308

Short Answer

Table 3-41
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-Refer to Table 3-41. If the two countries specialize and trade with each other, which country will import compasses?

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Definitions:

Consumption

The use of goods and services by households, constituting one of the major components of GDP.

APC

Average Propensity to Consume, which is the fraction of income that is consumed rather than saved.

MPS

The marginal propensity to save refers to the portion of each additional dollar of income that is set aside for savings instead of being spent.

Induced Consumption

Consumer spending that increases when income increases and decreases when income decreases.