Generally,as Income Rises,the Average Propensity to Consume

question 57

Multiple Choice

Generally,as income rises,the average propensity to consume

• A)stabilizes.
• B)drops to zero.
• C)increases.
• D)becomes erratic.
• E)decreases.

Distinguish between positive and negative reinforcement, and how they influence behavior.

Identify and differentiate between the various schedules of reinforcement and their effects on behavior.

Recognize the role of avoidance and escape learning in behavior modification.

Understand the effects of punishment on behavior and its potential long-term impacts.

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Definitions:

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as leases and insurance premiums.

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, contributing towards covering fixed costs and generating profit.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Net Operating Income

The total profit of a business after operating expenses are deducted but before taxes and interest are calculated.