-In the Above Figure, the Curve Labeled a Is the ________

question 432

Multiple Choice

-In the above figure, the curve labeled a is the ________ curve and the curve labeled b is the ________ curve.

• A) marginal cost; marginal benefit
• B) marginal cost; trade line
• C) marginal benefit; trade line
• D) production possibilities frontier; trade line

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Definitions:

Disposable Income

The budget households have for saving and spending activities after income taxes deductions.

Induced Consumption

Consumer spending that increases as income rises, and decreases when income falls, reflecting a direct relationship between income and consumption.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income.

Annual Consumption

The total amount of goods and services used or consumed by individuals or groups within a one-year period.