The Average Propensity to Consume Refers to The

question 5

Multiple Choice

The average propensity to consume refers to the:

• A)dollars of income spent on luxury goods.
• B)dollars of income saved by an individual.
• C)expenditure on the basic necessities of life.
• D)percentage of income spent for current consumption.
• E)fact that people with higher propensity to consume earn lower income.

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Definitions:

Authority

signifies the legitimate power or right given to an individual or body to make decisions, command resources, and enforce obedience.

Performing Stage

A phase in group development where members effectively work together and achieve high levels of task performance and cooperation.

Bruce Tuckman

An American psychological researcher known for his "forming, storming, norming, performing" model of group development.

Group Development

The sequence of stages groups undergo from formation to termination, including forming, storming, norming, and performing.