-Using the Data in the Above Table, If Income Is

question 100

Multiple Choice

-Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the slope of the straight line graph equals

• A) 0.2.
• B) 0.4.
• C) 0.5.
• D) 2.5.

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Definitions:

Personal Income

The total amount of income earned by an individual from all sources before any taxes are deducted.

Autonomous Consumption

Describes the expenditure that consumers will make even when they have no income, considering it as a basic level of consumption driven by needs.

Saving

The act of setting aside money for future use, reducing current consumption.

Induced Consumption

Consumer spending that increases or decreases as a result of changes in income, as opposed to autonomous consumption that does not change with income.