The Average Propensity to Consume Refers To

question 80

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 needs.
• E) the fact that people with higher propensity to consume earn lower income.

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Definitions:

Suggestion System

A formal method where employees can submit ideas or proposals to improve organizational processes or products.

Organization's Telephone Hotline

A dedicated phone line set up by an organization to offer information, support, or emergency services to its members or the public.

Grapevine

An informal network within an organization where information, rumors, and gossip are spread.

Chain of Command

is a system in organizations where authority and responsibility are structured in a hierarchical manner, guiding who reports to whom.