Use the Information Below to Answer the Following Questions

question 98

Multiple Choice

Use the information below to answer the following questions.
Fact 27.1.1
In an economy, when disposable income increases from $400 billion to $500 billion, consumption expenditure increases from $480 billion to $540 billion.
-Consider Fact 27.1.1. The marginal propensity to consume is

• A)0.75.
• B)0.80.
• C)0.60.
• D)0.40.
• E)0.25.

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Definitions:

Work

The exertion of effort towards achieving a goal, which can include employment as well as other forms of productive activity.

Service-based Economy

An economy that is primarily focused on the provision of services rather than the production of goods.

Industrialized Nations

Countries that have highly developed industries and infrastructure, often characterized by a high standard of living.

Probable Stage

A phase or condition where something is likely to occur or is expected based on current evidence or trends.