At the Point Where the Consumption Schedule Intersects the 45-Degree

question 203

Multiple Choice

At the point where the consumption schedule intersects the 45-degree line,

• A) the MPC equals 1.
• B) the APC is zero.
• C) saving equals income.
• D) saving is zero.

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Definitions:

Taxpayers

Individuals or entities that are obligated to pay taxes to a government authority, based on earnings, property ownership, or consumption.

Farmers

Individuals or entities engaged in the practice of agricultural production, cultivating plants and livestock for food, fiber, and other products.

Price Supports

are government-implemented mechanisms designed to maintain the market price of a good at a certain level to benefit producers.

Overallocation

The process of distributing or assigning more resources or rights than are available, often leading to shortages or conflicts.