The Branch of Economics That Applies the Principles and Methodology

question 51

Multiple Choice

The branch of economics that applies the principles and methodology of economics to the operation of the political process is known as

• A) private choice analysis.
• B) public choice analysis.
• C) government operations analysis.
• D) policy preference analysis.

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Definitions:

Disposable Income

The total amount of money available for an individual or household to spend or save after income taxes have been deducted.

MPS

The marginal propensity to save, indicating the proportion of additional income that a household saves rather than spends on consumer goods.

C

In economic formulas, "C" typically represents consumption spending by households.

Consumers

Individuals or households that purchase goods and services for personal use.