Evaluate the following statement.
A family with an $120,000 annual income can purchase twice the amount of goods and services as a $40,000 family.
True
False
True or False: Annual money income is not always a good measure of economic status.
True
False
1) The given statement is 'False'
This is because , the amount that is spent depends of Marginal Propensity to Consume where according to MPC , one can spend more than double or less than double for a $40,000
Therefore 'False' is the answer to this question
The given statement is True and this is because even a person having less annual income can have more assets even with less income and this may trigger wrong results.
Therefore 'False' is the answer to this question
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