Which of the Following Statements About Consuming in Excess of One's

question 75

Multiple Choice

Which of the following statements about consuming in excess of one's disposable income is not true?

• A) It is possible, and it's called dissaving.
• B) In this case, the values of both saving and the APS are negative.
• C) (APC + APS) will be less than 1 in this situation.
• D) The value of APC will be greater than 1 in this case.

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Definitions:

Communist Governments

Government systems where the state owns and controls all major aspects of the economy, aiming for classless society and elimination of private property.

Circular Flow Diagram

A visual model of the economy that shows how dollars flow through markets among households and firms.

Promote Society

A concept or initiative aimed at advocating for societal growth, well-being, and development.

Private Cost

The costs directly incurred by those producing or consuming a good or service, excluding externalities or indirect costs.