If Consumption Increases from $500 Billion to $575 Billion and Income

question 270

Multiple Choice

If consumption increases from $500 billion to $575 billion and income increases from $600 billion to $700 billion, the marginal propensity to save is:

• A) 0.2.
• B) 0.25.
• C) 0.75.
• D) There is not enough information to answer this question.

Distinguish between policies and procedures in the context of organizational readiness.

Acknowledge how school personnel can contribute to a positive school climate.

Understand the necessity of preparing for crises through in-service training, posting emergency procedures, and practicing drills.

Know when and why to implement shelter-in-place and lockdown protocols.

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Definitions:

Depletion

Depletion is an accounting method used to allocate the cost of extracting natural resources such as minerals, oil, and gas from the earth over the period they are consumed.

Straight-Line Method

A method of calculating depreciation of an asset, which spreads the cost evenly across its useful life.

Units-of-Activity Method

A depreciation method that allocates costs based on the actual usage or output of the asset rather than time.

Depletion Cost

The allocation of the cost of natural resources, such as minerals or oil, over the period they are extracted and sold.