Buying a Used Textbook from a Fellow Student Is an Example

question 12

Multiple Choice

Buying a used textbook from a fellow student is an example of what type of market?

• A) Local.
• B) National.
• C) Global.
• D) Labor.

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Definitions:

Saving

The act of setting aside a portion of one’s income for future use, instead of spending it immediately.

Disposable Income

After subtracting income taxes, disposable income is the money remaining for individuals or households to spend or save.

MPC

The marginal propensity to consume, indicating the proportion of an additional unit of income that is spent on consumption.

MPS

Marginal Propensity to Save, which is the portion of additional income that a household saves rather than consumes.