Which of the Following Is Not Another Way of Describing

question 113

Multiple Choice

Which of the following is not another way of describing the marginal propensity to consume?

• A) MPC
• B) The slope of the consumption function
• C) The change in real consumption spending divided by the change in real disposable income
• D) The amount by which real consumption spending rises when real disposable income increases by one dollar
• E) Autonomous consumption spending.

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Definitions:

Operating Costs

Expenses related to the day-to-day functioning of a business, excluding costs associated with production or acquisition of goods.

Total Cost

The complete sum of all expenses incurred in producing, acquiring, or carrying out an activity or service, including direct, indirect, fixed, and variable costs.

Best Alternative

The most favorable option available to a decision-maker when multiple choices are present.

Operating Costs

Expenses associated with the day-to-day functions of running a business, including costs for rent, utilities, payroll, and materials.