If the Slope of a Linear Consumption Schedule Increases in a Private

question 92

Multiple Choice

If the slope of a linear consumption schedule increases in a private closed economy, then it can be concluded that the

• A) MPS has increased.
• B) MPC has increased.
• C) income has increased.
• D) income has decreased.

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Definitions:

Total Cost

The sum of fixed and variable costs incurred in the production of goods or services.

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a good or service.

Standby Passenger

A traveler awaiting a seat on a flight or mode of transportation, typically without a reservation for a specific departure.

200-seat Plane

An aircraft designed to accommodate approximately 200 passengers, often used for commercial air travel.