Dissaving Occurs When

question 107

Multiple Choice

Dissaving occurs when:

• A) Income is greater than saving
• B) Income is less than consumption
• C) Saving is greater than consumption
• D) Saving is greater than the interest rate

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Definitions:

Average Total Costs (ATC)

The per-unit total cost (including both fixed and variable costs) of producing a good or offering a service.

Manufacturing Firm

A company involved in the conversion of raw materials into finished goods through the use of equipment and processes.

Marginal Returns

The additional output that is produced by utilizing one more unit of a particular input, while holding all other inputs constant.

Short-Run Average Total Cost (ATC₂)

The total cost divided by the quantity produced in the short-run, where some inputs are fixed.