If Consumption Is $13,000 When Income Is $12,000, and Consumption

question 121

Multiple Choice

If consumption is $13,000 when income is $12,000, and consumption increases to $15,000 when income increases to $15,000, the MPS is

• A) -0.15.
• B) 0.
• C) 0.33.
• D) 0.40.

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Definitions:

Imports

Goods or services brought into one country from another for the purpose of trade or sale.

Cournot Duopolists

A market structure in which two companies assume the other's output to be constant when determining their optimal production levels.

Total Costs

The total of all expenses involved in creating goods or services, encompassing both constant and fluctuating costs.

Daily Profit

The net financial gain or loss a business experiences on a daily basis.