-The Figure Above Shows a Nation's Consumption Function

question 177

Multiple Choice

-The figure above shows a nation's consumption function.If disposable income is $2 trillion, then the MPC is ________ and saving is ________.

• A) positive; positive
• B) positive; negative
• C) negative; positive
• D) negative; negative
• E) positive; zero

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from purchasing one more unit of a good or service.

Marginal Utility

The additional satisfaction or utility received from consuming one more unit of a good or service.

Demand Schedule

A demand schedule is a table that lists the quantity of a good that consumers are willing to purchase at various prices.

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a certain quantity of a good or service.