Author Question: The marginal propensity to consume (MPC) is the A) fraction of additional income that is spent. ... (Read 145 times)

mynx · **on:** Jun 30, 2018

The marginal propensity to consume (MPC) is the

A) fraction of additional income that is spent.
B) fraction of additional consumption that is not based on the level of income.
C) ratio of consumption to savings.
D) ratio of consumption to income.

Question 2

If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Eddie has a comparative advantage in producing banana splits.

Indicate whether the statement is true or false