What Is the Value of the MPC If $66 Out

question 14

Multiple Choice

What is the value of the MPC if $66 out of every $100 increase in disposable income is consumed?

• A) 0.34
• B) $166
• C) $34
• D) 0.66
• E) More information is needed to determine the MPC.

---

Definitions:

Direct Labor

The labor costs of employees who are directly involved in the production of goods or services.

Manufacturing Overhead

Indirect production expenses including costs for factory equipment depreciation, quality control, and facility rent that are not directly linked to individual products.

Cost of Goods Manufactured

The total cost incurred to produce goods that are completed within a specific accounting period.

Schedule of Cost

A detailed report showing the total costs incurred for a specific project or production process over a set period.