The Ratio of the Change in Consumption to the Change

question 168

Multiple Choice

The ratio of the change in consumption to the change in disposable income is called the

• A) marginal utility of consumption.
• B) average utility of consumption.
• C) marginal propensity to consume.
• D) average propensity to consume.

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Definitions:

Operating Activities

Business actions directly related to its day-to-day operations, such as selling products or services, which generate revenue and expenses.

Amortization Expense

The systematic allocation of the cost of an intangible asset over its useful life.

Book Value

The value of an asset according to its balance sheet account balance, which represents the cost of the asset minus any depreciation, amortization, or impairment costs.

Disposal

Disposal refers to the act of selling, discarding, or removing an asset from a company's balance sheet, often due to obsolescence, excess, or replacement.