a. True.
The marginal propensity to consume will measure the additional unit of consumption form the given level of income. The value of marginal propensity to consume will lies between 0 and 1. Thus the marginal propensity to consume will reduce with respect to rise in the level of income. The additional unit of consumption will reduce by rise in income. The higher income group people have lower level of MPC.
b. False.
The GDP measures the money value of final goods and services which produced by the firms in an economy, during a period of time. It excludes so many factors which may direct and indirectly affect the total production of the economy. It excludes the non-market transactions, black market, durable goods market, negative externalities depreciation, distortion, depression non market activities, and underground economy and the quality of life.
c. True.
The elasticity will measure the percentage change in the quantity with respect to change in the price. The flat elastic demand curve; shows the increase in price will lead to large decrease in the quantity. This kind of goods are perfectly elastic with a horizontal demand curve.