Determine Whether the Spending Pattern Described Is At, Above, or Below

question 231

Multiple Choice

Determine whether the spending pattern described is at, above, or below the national average. Assume that any salariesor wages are after tax.
-A couple in their forties with a combined household income of $56,000 per year spends $400 per month on health care.

• A)at average
• B)above average
• C)below average

---

Definitions:

Law of Diminishing Returns

An economic principle stating that, holding all else constant, as one input variable to the production process is increased, there comes a point when the added output from each additional unit of input decreases.

Productive

refers to the capability of producing significant amounts of goods and services, or contributing to economic output efficiently.

Intelligence

The ability to learn, understand, and make judgments or have opinions that are based on reason.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production labor.