The Table Shows a Consumption Schedule

question 26

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Disposable Income } & \text { Consumption } \\\hline \$ 300 & \$ 310 \\\hline 350 & 340 \\\hline 400 & 370 \\\hline 450 & 400 \\\hline 500 & 430 \\\hline\end{array}$$ The table shows a consumption schedule. At the $300 level of disposable income,

• A) the marginal propensity to save is 0.80.
• B) the average propensity to consume is 0.60.
• C) the average propensity to save is 0.30.
• D) there is a dissaving of $10.

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Definitions:

Frustration-Aggression

A theory proposing that frustration often leads to aggressive behavior, as aggression is a result of blocked, expected goals.

Ingroup Favoritism

The tendency to give preferential treatment and regard to members of one's own group over those of another group.

Minimal Group Effect

The minimal group effect describes the tendency of people to favor and prioritize the interests of even arbitrarily defined in-groups over out-groups.

Discontinuity Effect

A phenomenon in which groups exhibit less cooperation and more competitive or aggressive behaviors than individuals when engaged in intergroup interactions.