If Your Income Increases from $33,000 to $41,000 and Your

question 135

Multiple Choice

If your income increases from $33,000 to $41,000 and your consumption increases from $8,000 to $12,000, your marginal propensity to consume (MPC) is:

• A) 0.2.
• B) 0.4.
• C) 0.5.
• D) 0.8.
• E) 1.0.

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Definitions:

Self-handicapping Strategy

A cognitive strategy where an individual deliberately impedes their own progress towards a goal in order to maintain self-esteem in the face of failure.

Self-esteem

The subjective evaluation of one's own worth or value, often affecting confidence and mental health.

Excuses

Justifications or reasons given to explain why something was done or not done, often to avoid blame or responsibility.

Actor-observer Effect

The tendency to attribute one's own actions to external factors while attributing others' actions to their personality or disposition.