Online Test Quiz 9 Review
9 Questions
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There are different ways in which one can use to gauge how much they spend on a daily or monthly basis and this mostly depends on the income they have. The quiz below is the 9th in a series of tests that are set out to test out what you understood from Mac and Brue chapter 9. Try it out and see how well you are doing. All the best!
Questions and Answers
- 1.Consumption equals disposable income plus savings.
- A.
True
- B.
False
- 2.The most significant determinant of the level of consumer spending is disposable income.
- A.
True
- B.
False
- 3.Historical data suggest that the level of consumption expenditures is directly related to the level of disposable income.
- A.
True
- B.
False
- 4.Consumptions rises and savings falls when disposable income increases.
- A.
True
- B.
False
- 5.Empirical data suggest that households tend to spend a similar proportion of a small disposable income than of a larger disposable income.
- A.
True
- B.
False
- 6.The break-even income is the income level at which business begins to make a profit.
- A.
True
- B.
False
- 7.The average propensity to save is equal to the level of saving divided by the the level of consumption.
- A.
True
- B.
False
- 8.An increase in wealth will increase the consumption schedule (shift it upward).
- A.
True
- B.
False
- 9.An increase in the taxes paid by consumers will decrease both the amount they spend for consumption and the amount they save.
- A.
True
- B.
False
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