The Marginal Propensity to Consume

question 16

Multiple Choice

The marginal propensity to consume:

• A)is the proportion of disposable income that is consumed.
• B)is the ratio of disposable income to consumption.
• C)is the change in consumption relative to a change in disposable income.
• D)minus the marginal propensity to save must equal 1.
• E)is greater than 1 at all levels of income.

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Definitions:

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets.

Monopoly

A market structure characterized by a single seller who has exclusive control over a particular good or service.

Criminal Offenses

Acts or omissions punishable by law as defined by statute or common law.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at promoting competition and preventing monopolies by prohibiting certain anti-competitive practices.