The Table Given Below Reports the Consumption Expenditure of a Nation

question 54

Multiple Choice

The table given below reports the consumption expenditure of a nation at different levels of disposable income.
Table 9.1
$\begin{array}{|c|c|}\hline \text { Disposable Income }\left(Y_{2}\right) & \text { Consumption }(C) \\\hline \$ {0}& \$ 4,500 \\\hline \$ 10,000 & \$ 12,000 \\\hline \$ 15,000 & \$ 15,750 \\\hline \$ 25,000 & \$ 23,250 \\\hline \$ 30,000 & \$ 27,000 \\\hline \$ 35,000 & \$ 30,750 \\\hline \$ 40,000 & \$ 34,500 \\\hline \$ 50,000 & \$ 42,000 \\\hline\end{array}$
-Refer to Table 9.1. When disposable income is $20,000, consumption spending equals:

• A) $24,500.
• B) $15,000.
• C) $18,500.
• D) $19,500.
• E) $18,000.

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Definitions:

Group Leaders

Individuals who guide, influence, and direct a group aiming to achieve common goals.

Baumeister

Refers to Roy F. Baumeister, a psychologist known for his work on the self, social rejection, belongingness, and other aspects of social psychology.

Normative Influence

Social influence whereby individuals change their behavior or attitudes to conform to norms or expectations of a group to gain acceptance or approval.

Prior Commitment

An individual’s agreement in advance to be responsible if trouble occurs: for example, committing oneself to protect the property of another person against theft.