At 10,000 of disposable income, Audrey's consumption expenditure ...

[EAugust]

At 10,000 of disposable income, Audrey's consumption expenditure was 11,000. At 20,000 of disposable income, Audrey's consumption expenditure was 19,000. What is Audrey's marginal propensity to consume?
 
  What will be an ideal response?

Question 2

The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The opportunity cost of moving from production point B to production point C for Anaconda equals ________ and for Bear equals ________.
 
  A) 50 pairs of shoes; 100 pairs of shoes
  B) 100 pairs of shoes; 200 pairs of shoes
  C) 1 ton of corn; 1 ton of corn
  D) 550 pairs of shoes; 700 pairs of shoes
  E) 650 pairs of shoes; 900 pairs of shoes

[strudel15]

Answer to Question 1

The marginal propensity to consume is the change in consumption expenditure divided by the change in disposable income that brought it about. In this case, the marginal propensity to consume equals (8,000  10,

Answer to Question 2

B