The Increase in Imports Induced by a Dollar Increase in Income

question 55

Multiple Choice

The increase in imports induced by a dollar increase in income is called the ________________.

• A)import elasticity of demand
• B)marginal propensity to import
• C)income elasticity of imports
• D)none of the above

---

Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, decay, or obsolescence.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business.

Market Values

The current quoted price at which an asset or a company can be bought or sold.

Book Values

The value of an asset as it appears on a company's balance sheet, calculated as the cost of the asset minus accumulated depreciation.