A Variable That Induces a Change in Another Variable Is

question 27

Multiple Choice

A variable that induces a change in another variable is a(n) :

• A) dependent variable.
• B) independent variable.
• C) codependent variable.
• D) constant variable.

Analyze the effects of minimum wage laws on the supply and demand for labor.

Understand the impact of natural disasters on market prices and their role in resource allocation.

Comprehend the significance of government intervention in markets through price controls and its effects on supply and demand equilibrium.

Understand how price floors and price ceilings affect market equilibrium and lead to surpluses or shortages.

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Definitions:

Induced Consumption

Refers to the portion of consumer spending that changes in response to changes in income levels, typically increasing as disposable income rises.

Dissaving

The action of spending more money than received as income, typically by drawing down savings or borrowing.

45-Degree Line

In economics, a graphical representation used in Keynesian cross diagrams, where the line represents points where aggregate expenditure equals national income.

APC

The average propensity to consume, which is the ratio of consumption spending to disposable income.