Profits Are Equal to the Difference Between _____ Revenue and _____

question 135

Multiple Choice

Profits are equal to the difference between _____ revenue and _____ costs.

• A) total; marginal
• B) marginal; marginal
• C) total; total
• D) total; explicit

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Definitions:

Marginal Propensity

The ratio of the change in an economic variable (such as consumption or saving) in response to a change in another variable (such as income).

Disposable Income

Income remaining for a person to spend or save after all taxes have been paid.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been taken out.

Consumption Spending

Expenditures by households on goods and services, excluding purchases of new housing, and a major component of GDP.