Calculate the Average Rate of Change in Disposable Personal Income

question 26

Multiple Choice

Calculate the average rate of change in disposable personal income between 1995 and 2000. Round your answer to the nearest dollar.

• A) 2390 dollars per person per year
• B) 1195 dollars per person per year
• C) 3348 dollars per person per year
• D) 5150 dollars per person per year
• E) 1030 dollars per person per year

---

Definitions:

Willingness

The readiness or inclination of a person to do something or to act in a certain way, often used in economic contexts to discuss willingness to pay.

Marginal Utility

The incremental benefit or satisfaction a buyer obtains from the consumption of one more unit of a good or service.

Law

A system of rules created and enforced through social or governmental institutions to regulate behavior.

Comparative Advantage

A situation in which a person or country can produce a specific product at a lower opportunity cost than some other person or country; the basis for specialization and trade.