Data on After-Tax Income and Consumption Spending for the Adam

question 128

Multiple Choice

Data on after-tax income and consumption spending for the Adam Smith family are given below: $\begin{array}{cc}\underline { \text { After-tax Income }} & \underline { \text { Consumption Spending }} \\\$ 9,000 & \$ 18,100 \\\$ 14,000 & \$ 22,600 \\\$ 19,000 & \$ 27,100 \\\$ 24,000 & \$ 31,600\end{array}$
Based on these data,the Adam Smith family has a marginal propensity to consume of:

• A)0.9.
• B)0.8.
• C)0.75.
• D)0.6.

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Definitions:

Labor Unions

Labor Unions are organizations that represent the collective interests of workers in negotiations with employers regarding wages, benefits, workplace safety, and other employment terms.

Socialist Challenge

Refers to the various movements, ideologies, and efforts aimed at challenging capitalist systems with socialist principles for more equitable distribution of wealth and resources.

Boarding School

An educational institution where students live on the premises while being given formal instruction.

Civilize

To bring a society to a stage of social, cultural, and moral development considered to be more advanced, often used historically in a context of colonialism and imperialism.