If Your MPC Is 0

question 284

Multiple Choice

If your MPC is 0.5, then when your disposable income increases by $100, your consumption expenditure increases by

• A) $5.
• B) $200.
• C) $100.
• D) $50.
• E) $95.

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Definitions:

Rational-Legal

A concept in sociology that describes a form of governance or organization founded on laws, rules, and procedures rather than on traditional or charismatic authority.

Favoritism

The practice of giving unfair preferential treatment to one person or group at the expense of others.

Nepotism

Favoritism shown to relatives or friends by those in power, often by providing them employment.

Scientific Management

A theory of management that analyzes and synthesizes workflows, with the objective of improving labor productivity.