The Ratio of the Change in Consumption to the Change

question 168

Multiple Choice

The ratio of the change in consumption to the change in disposable income is called the

• A) marginal utility of consumption.
• B) average utility of consumption.
• C) marginal propensity to consume.
• D) average propensity to consume.

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Definitions:

Wage Gap

The wage gap is the difference in earnings between two groups of workers, often based on gender, ethnicity, or age.

High-Skill

Referring to jobs or workers that require advanced training, education, or experience.

Low-Skill

Pertaining to jobs or tasks requiring minimal specialized training or education, often associated with lower wages.

International Trade

The exchange of goods and services between countries, enabling economies to specialize and grow through the trade of products they produce efficiently.