-In the Above Table, the Marginal Propensity to Consume Equals

question 153

Multiple Choice

-In the above table, the marginal propensity to consume equals

• A) 0.90.
• B) 0.75.
• C) 0.80.
• D) 0.85.

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Definitions:

Production Possibilities Frontier

A curve depicting the maximum output combinations of two goods that can be produced given available resources and technology.

Opportunity Cost

The cost of what is foregone in order to pursue a certain action or decision.

Bowed-out

A term often used to describe a production possibility frontier that is concave from the origin, indicating increasing opportunity costs as more of one good is produced.

Adaptability

Adaptability is the ability to adjust readily to different conditions, environments, or situations, often considered a crucial skill in both personal and professional contexts.