Complete the Accompanying Table

question 17

Essay

Complete the accompanying table. Using the below graphs, show the consumption and saving schedules graphically. (b) Locate the break-even level of income.How is it possible for households to dissave at very low income levels?
(c) If the proportion of total income consumed decreases and the proportion saved increases as income rises, explain both verbally and graphically how the MPC and MPS can be constant at various levels of income.

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Definitions:

Intrinsically Rewarding

Valuable or fulfilling in itself, without requiring external reward or recognition.

Altruism

The behavior and attitude of selflessly caring for the well-being of others, often at a personal cost.

Windfall Bonus

An unexpected gain or profit, often a large sum of money received unexpectedly.

Bystander Effect

The social psychological phenomenon where individuals are less likely to offer help to a victim when other people are present.