Generally,as Income Rises,the Average Propensity to Consume

question 57

Multiple Choice

Generally,as income rises,the average propensity to consume

• A)stabilizes.
• B)drops to zero.
• C)increases.
• D)becomes erratic.
• E)decreases.

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Definitions:

Direct Material

Raw input directly utilized in the creation of a product, essential for the product’s production process.

Direct Labor

The wages and other compensation paid to employees directly involved in producing goods or providing services.

Overhead

General business expenses not directly attributed to creating a product or service.

Incremental Revenue

The additional revenue generated from a specific action or decision, beyond what would have been generated without it.