"Men Are Disposed, as a Rule, and on the Average

question 212

Multiple Choice

"Men are disposed, as a rule, and on the average, to increase their consumption as their income increases, but not by as much as the increase in their incomes." Which of the following is consistent with this statement by J.M.Keynes?

• A)The slope of the consumption function is positive and less than 1.
• B)The slope of the consumption function is greater than that of the 45-degree line.
• C)The slope of the consumption function is negative.
• D)The slope of the consumption function is equal to 1.

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Definitions:

Exertion of Power

The act of applying or enforcing one's authority or influence over others.

Labour Union

An organized association of workers formed to protect and further their rights and interests.

Proportional Representation

An electoral system in which the number of seats held by a political party in the legislature is proportionate to the number of votes received by that party in an election.

Political Economy

The interactions of politics, government and governing, and the social and cultural constitution of markets, institutions, and actors.