The Marginal Propensity to Consume Equals

question 61

Multiple Choice

The marginal propensity to consume equals

• A) consumption expenditure divided by the change in disposable income.
• B) the change in autonomous consumption divided by the change in induced consumption.
• C) consumption expenditure divided by disposable income.
• D) the change in consumption expenditure divided by the change in disposable income.
• E) the change in consumption expenditure divided by disposable income.

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Definitions:

Labor Rate Variance

The difference between the actual labor cost incurred and the standard labor cost for the actual hours worked.

Hourly Rates

The amount charged or paid for each hour of labor or service.

Labor Efficiency Variance

The difference between the expected amount of labor hours to complete a task and the actual hours used, indicating efficiency in labor use.

Standard Labor Rate

A predetermined rate used to allocate labor costs to products or services, based on the expected or average wage rate for labor.