If You Earn an Additional $200 in Disposable Income One

question 257

Multiple Choice

If you earn an additional $200 in disposable income one week for feeding your neighbor's ferret,

• A) the total of your consumption and saving will increase by more than $200.
• B) the total of your consumption and saving will increase by $200.
• C) the total of your consumption and saving will increase by less than $200.
• D) your consumption will increase by more than $200, even if your MPS is 0.1.

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Definitions:

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets, measuring how efficiently those assets are used to generate profit.

Total Asset Turnover

A ratio calculating how effectively a company utilizes its assets to produce sales income.

Return on Equity

A measure of a corporation's profitability, indicated by the amount of net income returned as a percentage of shareholders equity.