Chapter_30 - YourResultsfor:"SelfStudyQuiz"...

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Your Results for: "Self-Study Quiz" Print this page Site Title: Principles of Economics, Eighth Edition Book Title: Principles of Economics, 8/e Book Author: Case/Fair Location on  Site: Chapter 30 > Self-Study Quiz Date/Time  Submitted: February 9, 2012 at 5:16 AM  (UTC/GMT) Summary of Results 28% Correct  of 40 Scored items: 11 Correct:  28% 29 Incorrect:  73% 5 questions not scored. 40 scored questions. More information about scoring 1. The average propensity to consume  ( APC ) equals: Your Answer: The average amount of goods an consumes in a given period. Correct Answer: The proportion of income that con   Incorrect. The average propensity to consume (APC) is defined as the proportion of  income that households spend on consumption. 2. In the Keynesian theory of  consumption:  Your Answer: People who earn less spend less  than those who earn more. Correct Answer: High-income households consum income than low-income househo   Incorrect. It is the opposite. Keynes suggests that high-income households consume a  smaller proportion of their income than low-income households.
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3. In the  life-cycle theory of  consumption, Your Answer: High-income households consum income than low-income househo Correct Answer: People tend to consume less than working years.   Incorrect. This is another Keynesian idea, but it is the reverse. High- income households  consume a smaller proportion of their income. 4. Over a lifetime, which path is likely  to be more stable? Your Answer: The path of income. Correct Answer: The path of consumption.   Incorrect. The path of consumption over a lifetime is likely to be much more stable than  the path of income. 5. The term  negative wealth  refers to a  situation in which a household’s:  Your Answer: Accumulated debts are greater th Correct Answer: Assets are less than liabilities.   Incorrect. Many young households borrow in anticipation of higher income in the future. 6. Refer to the figure below. The figure  illustrates the life-cycle theory of  consumption. In this figure,  consumption is represented by:
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  Your Answer:   Correct. The consumption path, as drawn in the figure, is constant over the person’s life. 7. Refer to the figure below. The figure  illustrates the life-cycle theory of  consumption. Which area  corresponds to  dissaving? question_7.ai   Your Answer: B Correct Answer: C   Incorrect. During this time period, saving is positive. 8.
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This note was uploaded on 02/09/2012 for the course ECONOMY 101 taught by Professor Zaier during the Spring '11 term at Qatar University.

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Chapter_30 - YourResultsfor:"SelfStudyQuiz"...

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