Suppose the Consumption Schedule Is: C = 20

question 39

Multiple Choice

Suppose the consumption schedule is: C = 20 + .9Y,where C is consumption and Y is disposable income.
-Refer to the above data.The MPC is:

• A) .45.
• B) .20.
• C) .50.
• D) .90.

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Definitions:

Human Skills

The capabilities and expertise individuals possess that enable them to perform tasks, solve problems, and produce goods or offer services.

Capital

The buildings, equipment, and human skills used to produce goods and services.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Choices

The selection between alternative courses of action in decision-making scenarios.