Suppose Consumption Is Equal to £170

question 78

Multiple Choice

Suppose consumption is equal to £170. If autonomous consumption is £20 and income is £200, what is the value of the marginal propensity to consume (MPC) ?

• A) 0.5
• B) 0.65
• C) 0.7
• D) 0.75

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Definitions:

Standard of Living

The degree of prosperity, convenience, material possessions, and essential needs accessible to a specific social or economic group or particular location.

Open Market

A marketplace where buyers and sellers engage in trade of goods, services, and financial instruments freely and openly.

Offline Programming

The practice of creating and testing programs for automated systems without directly interacting with the physical machinery.

Machine Operation

The process or action that a machine performs, often dictated by programming or mechanical design, to carry out its intended function.