Author Question: If a household's income falls from 26,000 to 24,000 and its saving falls from 1,000 to 500, then its ... (Read 47 times)

Diane · **on:** Jun 30, 2018

If a household's income falls from 26,000 to 24,000 and its saving falls from 1,000 to 500, then its _____.
a. marginal propensity to consume is 0.98
b. marginal propensity to consume is 1.33
c. marginal propensity to consume is 0.25
d. marginal propensity to save is 0.02
e. marginal propensity to save is 0.25

Question 2

Private costs are:
a. the full resource costs of an economic activity.
b. always less than social costs.
c. the costs of an economic activity borne by the producer.
d. all of these.