When We Graph Consumption as a Function of ________ Rather

question 271

Multiple Choice

When we graph consumption as a function of ________ rather than as a function of disposable income, the slope of this consumption function is ________.

• A)national income; the MPC
• B)personal income; (MPC - MPS)
• C)national income; the MPS
• D)personal income; the MPS
• E)national savings; the MPS

---

Definitions:

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service than competitors, using the same amount of resources.

Trade Flows

The movement of goods and services across international borders, influenced by tariffs, trade agreements, and global economic conditions.

Free

Pertaining to the availability of a good, service, or resource without the requirement of payment or exchange.

Importers and Exporters

Businesses that specialize in bringing goods into a country (importers) and sending goods out of a country (exporters) to foreign markets.