An Increase in Disposable Income

question 226

Multiple Choice

An increase in disposable income

• A) increases consumption because it shifts the consumption schedule upward.
• B) decreases consumption because it shifts the consumption schedule downward.
• C) increases consumption by moving upward along a given consumption schedule.
• D) decreases consumption by moving downward along a given consumption schedule.

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Definitions:

Gate-control Theory

A theory that suggests pain is not merely a direct result of activation of pain receptor neurons but also a function of the interplay between different neurons.

Perception

The process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage.

Taste Buds

Nests of taste receptor cells.