_____________ Refers to the Tendency of Decision Makers to Be

question 28

Short Answer

_____________ refers to the tendency of decision makers to be influenced by the way that a situation or problem is presented.

---

Definitions:

Disposable Income

Resources that become available for households for expenditure and saving activities following income tax deductions.

Induced Consumption

Consumption that increases when income increases and decreases when income decreases, reflecting consumers' responsive behavior to changes in income levels.

Disposable Income

The monetary flexibility households have for saving and spending after deducting income taxes.

Consumption

The use of goods and services by households, constituting a primary component of economic activity.