Which of the Following Changes in Disposable Income Would Lead

question 11

Multiple Choice

Which of the following changes in disposable income would lead to the smallest increase in consumption?

• A)​a $20,000 increase in disposable income, if MPC equals 0.5
• B)​a $12,000 increase in disposable income, if MPC equals 0.75
• C)​a $15,000 increase in disposable income, if MPC equals 0.6
• D)​a $30,000 increase in disposable income, if MPC equals 0.25

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Definitions:

Presumed Consent

A policy where individuals are presumed willing to donate their organs upon death unless they have explicitly stated otherwise.

Informed Consent

The process by which a patient or research participant agrees to undergo a specific medical intervention or participate in research after receiving and understanding all the relevant facts and implications.

Rawlsian

Pertaining to the philosophical ideas of John Rawls, especially his theory of justice which emphasizes fairness and the "veil of ignorance" principle in ethical decision making.

Utilitarian

A philosophical theory that suggests an action is right if it leads to the greatest happiness for the greatest number of people.