The Table Given Below Reports the Consumption Expenditure of a Nation

question 18

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. The income level of $18,000 coincides with:

• A) the origin of the graph.
• B) the point where the consumption function touches the vertical axis.
• C) the point where the MPC equals 1.00.
• D) the point where the APC equals 1.00.
• E) the point where the consumption function crosses the 45-degree line.

---

Definitions:

Correlation

Correlation is a statistical measure that indicates the extent to which two or more variables fluctuate together.

Causation

The action of causing something, in philosophy and science, referring to the relationship between cause and effect.

Negative Effect

A typo; assuming "Effect" should be "Affect" refers to a dimension of mood involving negative emotions and bad feelings. If "Effect" as written, NO.

Body Weight

A measure of an individual's mass, usually considered in relation to height to assess health through indicators like BMI (Body Mass Index).