The Average Propensity to Consume Refers To

question 2

Multiple Choice

The average propensity to consume refers to:

• A)the dollars of income spent on luxury goods.
• B)the dollars of income saved by an individual.
• C)expenditures on the basic necessities of life.
• D)the percentage of income spent for current consumption.
• E)the fact that people with higher propensity to consume earn lower income.

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Definitions:

Trade Negotiations

The process whereby countries or organizations discuss, agree upon, and arrange the terms of trade in order to facilitate international business.

Trade Disputes

Disagreements or conflicts arising between employees and employers or between different labor unions, often regarding terms of employment or working conditions.

Economic Cycles

Periods of economic expansion and contraction measured by changes in GDP and other economic indicators.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.