Suppose When Disposable Personal Income Increases from $10,000 to $15,000

question 103

Multiple Choice

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $12,000. What is the marginal propensity to consume?

• A) 0.2
• B) 0.4
• C) 0.6
• D) 0.8

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Definitions:

Sociological Imagination

The ability to see the relationship between individual experiences and larger societal patterns.

Equality Of Opportunity

The principle that all individuals should have the same chances to succeed, without facing discrimination or unfair barriers.

Social Solidarity

The sense of unity and mutual support within a society that binds individuals together.

Max Weber

A German sociologist, philosopher, and political economist who significantly contributed to the methodology of social science and the concept of bureaucracy.