Foundations of Economics, 8th Edition

Chapter Checkpoint

Click here to open your MyEconLab Study Plan and work these interactive problems online.

Study Plan Problems and Applications

Table 1 shows disposable income and saving in an economy. Use Table 1 to ­answer Problems 1 and 2.

1. Calculate consumption expenditure at each level of disposable income. Over what range of disposable income is there dissaving? Estimate the level of disposable income at which saving is zero.

   Table 1

   

   Table 1 Full Alternative Text

2. Calculate the marginal propensity to consume. If wealth increases ...