15 Questions
According to J.S. Duesenberry, what is the determinant of an individual's consumption?
Relative income
According to Duesenberry, does an individual's consumption depend on their current income?
Yes, it depends on their previously reached income level
According to Duesenberry's relative income hypothesis, what does an individual's consumption depend on?
Their relative position in the income distribution
If the incomes of all individuals in a society increase by the same percentage, what happens to an individual's relative income according to Duesenberry?
It remains the same
According to Duesenberry, what does an individual's consumption depend on in relation to other individuals in the society?
Their relative position in the income distribution
According to Kuznets' empirical studies, what remains almost constant over a long period of time?
The average propensity to consume
According to Duesenberry's relative income hypothesis, what would happen to an individual's savings as their income increases?
Their savings would not rise much
What is the reason behind individuals with relatively low incomes not increasing their savings proportionally to their income increase according to Duesenberry?
Their relative incomes would not change
Who does Duesenberry's relative income hypothesis apply to?
All individuals and households
What does Duesenberry's relative income hypothesis suggest about the community's consumption in the long run?
It would remain the same proportion of income
According to Kuznets' empirical studies, what remains almost constant over a long period of time?
The average propensity to consume
According to Duesenberry's relative income hypothesis, what is the determinant of an individual's consumption?
Their relative income
Who does Duesenberry's relative income hypothesis apply to?
All individuals and households
According to Duesenberry, what is the reason behind individuals with relatively low incomes not increasing their savings proportionally to their income increase?
Their consumption habits
If the incomes of all individuals in a society increase by the same percentage, what happens to an individual's relative income according to Duesenberry?
It remains the same
Quiz: Understanding Duesenberry's Theory of Consumer Behavior Test your knowledge of J.S. Duesenberry's theory of consumer behavior with this quiz. Explore the concept of relative income as a determinant of consumption and discover the key differences between Duesenberry's theory and Keynes's consumption theory. Challenge your understanding of how an individual's consumption relates to their current income.
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