Data on Disposable Income and Consumption Spending for the Adam

question 162

Multiple Choice

Data on disposable income and consumption spending for the Adam Smith family are given below:
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.
• E) 0.5.

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Definitions:

Oil Field

An area underlain by reservoirs containing petroleum and natural gas extractable through drilling.

Volcanoes

Openings in the Earth's crust from which molten rock, ash, and gases are ejected, often forming mountains or craters.

Noxious Gases

Refers to harmful or toxic gases, which can be produced by natural processes such as volcanic eruptions or through human activities.

Volcanic Ash

Particles of volcanic tephra that are sand-sized or smaller, and accumulations of such material.