The Average Propensity to Consume Refers to the

question 114

Multiple Choice

The average propensity to consume refers to the

• A)dollars of income spent for current consumption.
• B)percentage of income saved.
• C)expenditures for the minimum necessities of life.
• D)percentage of income spent for current consumption.
• E)fact that people with higher incomes spend more for the necessities of life.

---

Definitions:

AASB 141

The Australian Accounting Standards Board's standard on Agriculture, outlining the accounting treatment for agricultural activity.

IAS 41

International Accounting Standard 41, which deals with agriculture, outlining how to account for and report the financial performance and position of agricultural activities.

Biological Transformation

The process by which living organisms convert substances into different forms, such as the conversion of milk into cheese by bacteria.

AASB 141

The Australian Accounting Standards Board statement that outlines the accounting for agricultural activities.