The Marginal Propensity to Consume Is Found by

question 19

Multiple Choice

The marginal propensity to consume is found by

• A) dividing consumption expenditure by disposable income.
• B) dividing disposable income by consumption expenditure.
• C) dividing the change in disposable income by the change in consumption expenditure.
• D) dividing the change in consumption expenditure by the change in disposable income.

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Definitions:

Cost Centers

Parts of an organization where costs can be identified and directly attributed, but which do not directly generate revenue.

Profit Centers

Parts of an organization that directly contribute to its profit through their operations and are responsible for their own revenues and costs.

Decentralized Operations

A management structure where decision-making and operations are distributed among various autonomous units or departments within an organization.

Profitability

A measure of the efficiency and effectiveness of a company in generating profit relative to its revenue or investments over a specific period.