If Consumption Is $800 When Income Is $1,000, the Marginal

question 78

True/False

If consumption is $800 when income is $1,000, the marginal propensity to consume (MPC) must be 0.80.

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Definitions:

Stock Options

Financial instruments that give an employee the right to buy or sell the company's stock at a predetermined price within a specific period.

Scanlon Plan

A participative management approach that focuses on improving productivity and sharing the resulting cost savings with employees.

Collective Stock Options

A form of employee incentive where groups of workers are granted options to buy company stock at a discounted price.

Profit-Sharing Plan

A company program that gives employees a share in the company’s profits based on its quarterly or annual earnings, serving as a tool to motivate and reward employees.