Answer:
The Marginal Propsensity to Consume is four-fifths
Explanation:
To answer the question, an indirect approach must be used.
- First, we are given data on disposable income and Savings, it is, therefore, easy to assume that we are to calculate the Propensity to Save.
- The Formula for calculating the Propensity to Save is: Change in Savings /Change in Income.
- Change in Savings: $300-$200= $100
- Change in Income: $1,700-$1,200=$500
- MPS= $100/$500= One-fifth
- But hold on: One-fifths Marginal propensity to save is not part of the options, so we continue:
- If Marginal Propensity to Save is One-Fifths, then based on a formula the Marginal Propensity to Consume is the balance of the Subtraction of One-Fifths from One:
- The Marginal Propensity to Consume is therefore four-fifths.
Note:
- If the data given was increase in consumption instead of savings then we would have directly calculated Marginal Propensity to Consume= Change in Consumption/Change in Income or
It's A - fear. <span>This text exploits human fears for unpredictable events: car accident, illness, handicap etc</span>
Answer:
True
Explanation:
When a firm has international operations it should choose the most appropriate structure based on the following factors:
- extent of international expansion: into how many international regions do we plan to expand our activities.
- the type of strategy: the have to choose between global, multidomestic or international strategy
- the degree of product diversity: on how many additional markets will our products compete? regionally or globally
Although 1 and 3 may be similar, there can be significant differences. For example, a US company may want to start selling their products in all of South America (regional product diversity), but it will do it by setting a South American office in Brazil only (international expansion is limited to Brazil only).
Answer:
Option "B" is correct
Explanation:
The increase in the airline of business years with bring about uniformity of price elasticity between them and vacationers.
