Ryan and Ben Are Best Friends

question 11

Multiple Choice

Ryan and Ben are best friends. Ryan regularly runs marathons and is a member of the Marathon Runners Club at his university. Ben also wants to join the club, but he is not a very strong runner. Ben decides to start running every day so that he can participate in marathons and become a member of the club. Given this information, the Marathon Runners Club can be categorized as a(n) _____.

• A)interest reference group
• B)primary reference group
• C)aspirational reference group
• D)nonaspirational reference group

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Definitions:

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income, indicating how spending is expected to increase with income.

Price Level

A measure of the average prices of goods and services in an economy at a specific time.

Consumption Function

A mathematical representation showing the link between total consumer expenditure and the gross national income.

Consumption Function

An economic concept that describes the relationship between total consumption and gross national income.