Following Is Consumption Schedules for Three Private Closed Economies

question 118

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.At an income level of $40 billion, the average propensity to consume:

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

---

Definitions:

Automated Equipment

Automated equipment consists of machinery and tools that operate with minimal human intervention, often used in manufacturing to increase efficiency and reduce labor costs.

Break-Even Point

The level of sales or production at which a business's revenues equal its expenses, resulting in neither profit nor loss.

Contribution Margin

The difference between sales revenue and variable costs of a product, indicating how much contributes to covering fixed costs and generating profit.

Break Even

The point at which total costs equal total revenue, meaning that a business or project is neither making a profit nor incurring a loss.