(Table) the Table Shows Data on Consumption at Various Levels

question 231

Multiple Choice

(Table) The table shows data on consumption at various levels of income. The value of the marginal propensity to save is: $$\begin{array} { | c | c | } \hline \text { Income } & \text { Consumption } \\\hline \$ 0 & \$ 250 \\\hline \$ 500 & \$ 700 \\\hline \$ 1,000 & \$ 1,150 \\\hline \$ 1,500 & \$ 1,600 \\\hline \$ 2,000 & \$ 2,050 \\\hline \$ 2,500 & \$ 2,500 \\\hline\end{array}$$

• A) 0.1.
• B) 0.25.
• C) 0.75.
• D) 0.9.

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Definitions:

Manufacturing Equipment

Machinery and tools that are used in the process of producing goods in a manufacturing facility.

Salvage Value

Salvage Value is the estimated residual value of an asset at the end of its useful life, expected to be recovered once the asset is no longer useful in operations.

Straight-Line Method

A method of allocating the cost of an asset evenly across its useful life for accounting and depreciation purposes.

Completed-Contract Method

An accounting method where revenue and expenses are recorded only when a contract is completed, used primarily for long-term projects.