Complete the Accompanying Table

question 3

Essay

Complete the accompanying table. (a) What is the break-even level of income? How is it possible for households to dissave at very low income levels?
(b) If the proportion of total income consumed decreases and the proportion saved increases as income rises, explain how the MPC and MPS can be constant at various levels of income.

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Definitions:

Disproportionately

In a way that is out of proportion or not in an equal or fair ratio relative to another quantity or measure.

Conflict Theory

Generally focuses on large, macro-level structures, such as the relations between classes. It shows how major patterns of inequality in society produce social stability in some circumstances and social change in others. It stresses how members of privileged groups try to maintain their advantages while subordinate groups struggle to increase theirs. It typically leads to the suggestion that eliminating privilege will lower the level of conflict and increase the sum total of human welfare.

Deviance

Behaviors or actions that violate societal norms or values, which can range from minor infractions to serious crimes.

Crime

Crime denotes acts that violate laws and are punishable by the state or other authority.