Which of the Following Give a Producer a Way to Be

question 224

Multiple Choice

Which of the following give a producer a way to be certain that final consumers actually get the price reduction?

• A)rebates
• B)push money allowances
• C)spiffs
• D)trade-in allowances
• E)noncumulative quantity discounts

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Definitions:

MPS (Marginal Propensity to Save)

The proportion of an increase in income that an individual or population saves rather than spends on consumption.

APC (Average Propensity to Consume)

The fraction of income that households plan to spend on goods and services; it is the ratio of total consumption to total disposable income.

Disposable Income

Refers to the amount of money that households have available for spending and saving after income taxes have been accounted for.

APS (Average Propensity to Save)

The fraction of total income that is saved by the average household.