Use the Table Below to Determine the Marginal Propensity to Consume

question 132

Multiple Choice

Use the table below to determine the marginal propensity to consume (MPC) .

• A) 0.7
• B) 0.8
• C) 0.9
• D) 1.0
• E) 1.8

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Definitions:

Maslow's Theory

refers to Maslow's Hierarchy of Needs, a psychological theory proposing that humans are motivated by five levels of needs: physiological, safety, love/belonging, esteem, and self-actualization.

Prepotent Needs

In Maslow's hierarchy, these are more dominant or pressing needs that must be satisfied before higher-level needs can be addressed.

Climate of Openness

An organizational atmosphere where communication is encouraged, and employees feel comfortable sharing ideas and feedback.

"Useless" Idea

An idea perceived as having no practical value or immediate benefit, though it may have potential for future application or innovation.