Wealth Beyond What Is Needed to Meet Basic Human Needs

question 28

Multiple Choice

Wealth beyond what is needed to meet basic human needs such as food and shelter is known as

• A)excess wealth.
• B)surplus goods.
• C)surplus wealth.
• D)excessive wealth.

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Definitions:

Disposable Income

Money left after taxes and compulsory fees have been subtracted, which can be used for spending or saving according to personal preference.

Marginal Propensity

The additional amount that people consume or save when they receive an extra dollar of income.

Simple Spending Multiplier

A ratio that estimates the impact on aggregate output (or income) of a change in autonomous spending.

Net Taxes

The total taxes paid by an individual or business minus any government subsidies or refunds received.