Use the Table Below to Answer the Following Questions

question 53

Multiple Choice

Use the table below to answer the following questions.
Table 27.1.1
The following table shows the relationship between consumption
expenditure (C) and disposable income (YD) for a hypothetical economy.

-Refer to Table 27.1.1. The marginal propensity to consume is

• A)increasing as YD increases.
• B)equal to 1 when YD equals $600.
• C)0.75.
• D)0.25.
• E)1.33.

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Definitions:

Self-Serving Bias

Self-serving bias is a cognitive bias that leads individuals to attribute their successes to personal qualities and their failures to external factors, protecting self-esteem.

Distinctiveness

The quality of being easily distinguished or set apart from others due to unique attributes or characteristics.

Consistency

The quality of being uniform, stable, and free from contradiction over time.

Consensus

A form of collective agreement where all members of a group support a decision even if it may not be their first choice, ensuring that everyone's opinion is considered.