Last Year,Linus Earned a Salary of $25,000 and He Spent

question 65

Multiple Choice

Last year,Linus earned a salary of $25,000 and he spent $24,000,thus saving $1000.At the end of the year,he received a bonus of $1000 and he spent $500 of it,saving the other $500.What was his marginal propensity to consume?

• A)0.96
• B)0.50
• C)0.04
• D)0.02

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Definitions:

Repeated Measures

Repeated measures involve using the same subjects or participants in an experiment to test a variable under different conditions or at different times, reducing variability caused by different individual characteristics.

Latin Square

A design technique in statistics for experiments with two blocking factors where each variable appears exactly once in each row and column.

Complete Counterbalancing

An experimental design technique where all possible orders of presenting stimuli are used to control for order effects.

Matched Pairs Design

A method of assigning subjects to groups in which pairs of subjects are first matched on some characteristic and then individually assigned randomly to groups.