An Increase in U

question 68

Multiple Choice

An increase in U.S. exports because of increasing foreign incomes represents ________ in the United States.

• A) an increase in autonomous expenditure
• B) a decrease in autonomous expenditure
• C) an increase in induced expenditure
• D) a decrease in induced expenditure

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Definitions:

Marginal Analysis

A review of the extra advantages gained from an activity in relation to the extra expenses it generates.

Benefit

The advantage or gain received from a decision, action, or policy, often used in the analysis of choices in economics.

Bounded Rationality

A basis for decision making that leads to a choice that is close to but not exactly the one that leads to the best possible economic outcome; the “good enough” method of decision making.

Closeout Sale

A type of sale with significantly reduced prices, aimed at clearing out inventory.