If a $1,000 Increase in Income Leads to an $800

question 77

Multiple Choice

If a $1,000 increase in income leads to an $800 increase in consumption expenditures,then the marginal propensity to consume is

• A)0.2 and the multiplier is 1.25.
• B)0.8 and the multiplier is 5.
• C)0.2 and the multiplier is 1.25
• D)0.8 and the multiplier is 8.

Understand the economic principles underlying fishery and forestry management and conservation.

Analyze the impact of property rights on the management and conservation of natural resources.

Describe the market dynamics and economic implications of the fishing industry, including concepts like ITQs and TAC.

Evaluate the relationship between economic development, environmental sustainability, and population growth.

---

Definitions:

Compensating Differential

A difference in wages that arises from non-monetary characteristics of different jobs, such as risk or undesirable location.

Baker

A person who primarily bakes and sells bread, pastries, and other baked goods as their profession.

Long Hours

The situation of working a significantly larger number of hours than the standard working time, often leading to stress and health issues.

Own-Price Elasticity

A measure of the responsiveness of the demand for a good to a change in its own price.