Quantity Price Standards

question 86

Multiple Choice

Quantity price standards

• A)are standard price multiplied by standard quantity.
• B)specify how much of the quantity of input should be used for the standard price.
• C)specify how much should be paid for the quantity of input to be used.
• D)specify how much of the quantity of input should be used for the actual price.

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Definitions:

45-Degree Line

In economics, a graphical representation used in Keynesian cross diagrams, where the line represents points where aggregate expenditure equals national income.

APC

The average propensity to consume, which is the ratio of consumption spending to disposable income.

Dissaving

Occurs when individuals withdraw funds from their savings, often due to expenditures exceeding income during a specific period.

Autonomous Consumption

The level of consumption that occurs when income is zero; it is the base level of spending that must occur even if an individual has no income.