(Table) the Table Shows Data on Consumption at Various Levels

question 97

Multiple Choice

(Table) The table shows data on consumption at various levels of income. Assume there is no private investment. The value of the marginal propensity to save is

• A) 0.1.
• B) 0.25.
• C) 0.75.
• D) 0.9.

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Definitions:

Depreciation

The systematic reduction of the recorded cost of a fixed asset over its useful life to reflect wear and tear or obsolescence.

Operating Cash Flow

The cash generated from normal operating activities of a business, reflecting its ability to generate sufficient cash to maintain operations.

Net Income

A company's overall income following the deduction of all expenditures and tax obligations from its total earnings.

Opportunity Costs

The loss of potential gain from other alternatives when one particular option is chosen over them.