What does the marginal propensity to consume measure and how is it related to the consumption function?
What will be an ideal response?
The marginal propensity to consume, or MPC, is the change in consumption expenditure divided by the change in disposable income. The MPC tells the proportion of any change in disposable income spent on consumption expenditure. The marginal propensity to consume is equal to the slope of the consumption function.
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The most efficient market structure in the long run is
a. perfect competition. b. monopolistic competition. c. oligopoly. d. monopoly.
When several hurricanes hit Florida in 2004, a number of local governments imposed price controls that prevented sellers from raising their prices for badly needed products like plywood and generators. In the areas where the controls were imposed, they resulted in
a. an expanded availability of these badly needed products. b. a reduced availability of these badly needed products. c. an increase in the speed with which people recovered from the hurricanes. d. a more efficient allocation of these goods for which price controls were in effect.