The Consumption Schedule in the Diagram Below Indicates That

question 116

Multiple Choice

The consumption schedule in the diagram below indicates that:

• A) consumers will maximize their satisfaction where the consumption schedule and 45° line intersect.
• B) up to a point consumption exceeds income,but then falls below income.
• C) the MPC falls as income increases.
• D) households consume as much as they earn.

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Definitions:

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure the effect of the treatment.

Experimental Groups

In scientific research, groups of subjects that receive the treatment or intervention being tested, allowing researchers to assess its effects.

Experimental Method

A systematic and scientific approach to research in which the researcher manipulates one variable to measure its effect on another variable.

Cause And Effect

A relationship where one event (the cause) makes another event happen (the effect).