The Marginal Propensity to Consume Measures

question 9

Multiple Choice

The marginal propensity to consume measures:

• A)the ratio of imports to income
• B)the ratio of income to imports
• C)the change in imports over the change in income
• D)the change in income over the change in imports

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Definitions:

Resource Demand

The desire and ability of businesses or individuals to acquire economic resources or inputs for the production of goods and services.

Product Requirement

Specifications or criteria that a product must meet related to its design, functionality, and performance.

Resource Decreases

The reduction in the availability or supply of natural, human, or capital resources in an economy or specific market.

Substitute Input

An alternative resource or material that can be used in place of another in the production process to achieve the same outcome.