Table 3-4 Assume That the Farmer and the Rancher Can Switch Between

question 204

Multiple Choice

Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.

-Refer to Table 3-4.The opportunity cost of 1 pound of meat for the rancher is

• A) 1/2 pound of potatoes.
• B) 2 hours of labor.
• C) 2 pounds of potatoes.
• D) 3 hours of labor.

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Definitions:

APS

The Average Propensity to Save, which is the proportion of total income that is saved rather than spent on consumption.

APC

It stands for Average Propensity to Consume, indicating the fraction of income that is spent on consumption rather than savings.

APS

Average Propensity to Save, which is the fraction of income that is saved rather than spent on consumption, calculated as savings divided by disposable income.

APC

Average Propensity to Consume, the ratio of total consumption to total disposable income, indicating how much income is spent on goods and services.