Anita Spent Two Months Trying to Decide Whether to Buy

question 56

Multiple Choice

Anita spent two months trying to decide whether to buy an IBM computer or a Macintosh. She finally decided on a Mac.Now,Anita most likely

• A)wishes she'd bought the IBM.
• B)is certain she made the right decision.
• C)still thinks IBMs and Macs are equally good computers.
• D)tries to convince all her friends to buy IBMs.

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Definitions:

MPS

The marginal propensity to save, which is the fraction of additional income that is saved.

Disposable Income

The fiscal envelope for household spending and saving activity subsequent to income tax adjustments.

Consumption

The purchase and use of goods and services by households, considered a primary component of economic activity and an indicator of the economic health of a nation.

Saving

The act of not consuming all of one's income and instead holding onto it for future investments or expenditure needs.