When Calculating the Cost of College,which of the Following Should

question 72

Multiple Choice

When calculating the cost of college,which of the following should you probably not include?

• A)The cost of tuition
• B)The cost of books required for college classes
• C)The income you would have earned had you not gone to college
• D)The cost of rent for your off-campus apartment.

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Definitions:

Marginal Propensity

The additional amount that consumers are likely to spend out of an additional unit of income.

Consumption Function

A formula in economics that shows the link between overall consumption and the gross national income.

Price Level

An index that measures the average of prices for goods and services in an economy over a period of time.

Aggregate Expenditure Line

A graphical representation of the total planned spending in an economy at various levels of national income.