Data on After-Tax Income and Consumption Spending for the Adam

question 152

Multiple Choice

Data on after-tax income and consumption spending for the Adam Smith family are given below: Based on these data, the Adam Smith family has a marginal propensity to consume equal to:

• A) 0.9.
• B) 0.8.
• C) 0.75.
• D) 0.6.

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Definitions:

Primacy

The principle that items or information presented first are usually remembered better than items presented later.

Genetic Factors

Elements of an individual's DNA that influence their physical attributes, behaviors, and susceptibility to certain diseases.

Parental Effect

The influence that parents have on the development, behavior, and personality of their children, often studied in psychology and behavioral genetics.

Allport

Refers to Gordon Allport, a psychologist who emphasized the uniqueness of the individual and the importance of the present context for understanding behavior.