If Personal Saving Is -$10 Billion and Disposable Personal Income

question 175

Multiple Choice

If personal saving is -$10 billion and disposable personal income is $370 billion, then personal consumption spending

• A) is $360 billion.
• B) is $380 billion.
• C) is $390 billion.
• D) cannot be determined from this information.

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Definitions:

Simon Kuznets

Simon Kuznets was a Nobel Prize-winning economist known for his work on economic growth and for developing the concept of Gross National Product (GNP).

Quality of Inputs

The standard or grade of raw materials and labor used in the production process, influencing the efficiency and outputs.

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Productivity

The measure of the efficiency of production, often defined as the ratio of output produced to inputs used.