-In the Above Table, the Marginal Propensity to Save When

question 212

Multiple Choice

-In the above table, the marginal propensity to save when disposable income changes from $1,000 to $2,000 is

• A)0.1.
• B)0.2.
• C)0.8.
• D)-0.2.

---

Definitions:

Profit Income

The financial gain that results when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Market System

In this economic framework, the determination of investment, production, and distribution is influenced by the market signals emanating from the interplay of supply and demand.

Economic System

The mechanism or set of processes by which a society organizes and distributes its resources, goods, and services.

Factors Of Production

The four economic resources: land, labor, capital, and entrepreneurial ability.