The Marginal Propensity to Consume Refers to _____

question 73

Multiple Choice

The marginal propensity to consume refers to _____.

• A) the extra consumption when income increases by an extra unit
• B) the proportion of total income which is spent on consumption
• C) the proportion of total income that is spent on inferior goods
• D) the decrease in consumption that will result from an increase in income

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Definitions:

Punishment

A consequence applied to decrease or eliminate a behavior or action considered undesirable.

Acquisition

The process of gaining possession or control of another company or business entity.

Extinction

Extinction in behavioral science refers to the gradual reduction and eventual disappearance of a conditioned response when the reinforcement is no longer presented.

Reinforcement Strategy

A technique employed to encourage desired behavior by using incentives or consequences, often used in organizational behavior management.