The Marginal Propensity to Consume Is The

question 63

Multiple Choice

The marginal propensity to consume is the:

• A) ratio of consumption to income.
• B) amount consumed out of an additional dollar of income.
• C) amount available for consumption after precautionary saving.
• D) ratio of consumption to wealth.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on estimated costs and activity levels.

Direct Labour Hour

Direct labour hour is a measure of the amount of time workers spend on direct production activities, directly involved in manufacturing goods or providing services.

Manufacturing Overhead

Manufacturing expenses not directly linked to individual product units, encompassing indirect materials and labor.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to products based on a specific activity base, like machine hours or labor hours.