Refer to the Given Consumption Schedules

question 37

Multiple Choice

Refer to the given consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. At an income level of $400 billion, the
Average propensity to save in economy (2) is

• A) 0.9125.
• B) 0.0725.
• C) 0.0875.
• D) 0.9305.

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Definitions:

Consumption Level

The total amount of goods and services that an individual or group consumes over a specific period.

Technological Improvement

Innovations and advancements in technology that enhance productivity, efficiency, and quality of goods and services.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, representing the trade-offs in production choices.

Economic Questions

Fundamental questions that societies address regarding allocation of resources and distribution of goods and services; typically includes "what to produce," "how to produce," and "for whom to produce."