-Refer to the Above Diagram

question 136

Multiple Choice

-Refer to the above diagram.The marginal propensity to save is equal to:

• A) CD/0D.
• B) 0B/0A.
• C) 0D/0D.
• D) CD/BD.

Understand the concept and relevance of the Lorenz curve in representing income distribution.

Grasp the significance of the Gini ratio as a measure of income inequality.

Identify the impact of income distribution on various population segments.

Compare the degree of income inequality among different populations or countries using the Gini ratio and Lorenz curve.

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Definitions:

Variable Costs

Variable Costs are costs that vary directly with the level of production or sales volume.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, which are constant regardless of business activity levels.

Trade Discount

A discount granted by the supplier to a purchaser of goods for resale.

Trade Discount

A reduction in the retail price provided by a seller to a buyer, often based on the quantity of goods purchased or to encourage prompt payment.