Following Is Consumption Schedules for Three Private Closed Economies

question 135

Multiple Choice

Following is consumption schedules for three private closed economies.DI signifies disposable income and C represents consumption expenditures.All figures are in billions of dollars. Refer to the above data.The marginal propensity to consume:

• A)is highest in economy (1).
• B)is highest in economy (3).
• C)is highest in economy (2).
• D)cannot be calculated from the data given.

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Definitions:

Break-even Point

A situation where the total earnings are equivalent to the total costs, therefore no profit or loss is made.

Sales Dollars

The total revenue generated from the sale of goods or services, measured in dollars.

Target Profit

The anticipated profit that a company aims to achieve within a specific time period.

Unit Sales

The quantity of a product sold by a company in a specific period.