Explanation:

Given Equation:
- APS = 1 + APC

Calculation:
- APC is the Average Propensity to Consume
- APS is the Average Propensity to Save
- The equation APS = 1 + APC is a fundamental equation in economics that shows the relationship between the average propensity to consume and the average propensity to save.
- According to this equation, the average propensity to save is always 1 greater than the average propensity to consume.

Answer:
- Therefore, the correct answer is option B

Explanation:
To determine whether the statement is true or false, we need to understand the definitions of APS and APC.
- APS: Average Product of Labor (APS) is the total output produced per unit of labor input.
- APC: Average Physical Capital (APC) is the total output produced per unit of physical capital input.
The given statement, "APS = 1 APC," implies that the average product of labor is equal to the average physical capital.
To evaluate this statement, we need to consider the relationship between labor and physical capital in the production process.
- If labor and physical capital have a one-to-one relationship, where an increase in labor input results in the same increase in physical capital input, then APS could be equal to APC.
- However, in most production processes, labor and physical capital have different roles and contributions. Labor input refers to the human effort and skills, while physical capital input refers to the machinery, equipment, and infrastructure used in production. These inputs are not directly interchangeable or equal.
Therefore, the statement "APS = 1 APC" is false. It cannot be generalized that the average product of labor is always equal to the average physical capital. The relationship between APS and APC depends on the specific production process and the relative importance of labor and physical capital inputs.