If Income Is $50,000, Consumption Is $47,500, and Saving Is

question 144

Multiple Choice

If income is $50,000, consumption is $47,500, and saving is $2,500, then the marginal propensity to consume is:

• A) 0.95.
• B) 0.50.
• C) 0.05.
• D) There is not enough information to answer this question.

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Definitions:

Servicing

The process of maintaining or repairing a product or fulfilling the terms of a service agreement.

Personal Selling Process

Sales activities occurring before, during, and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up.

Approach Stage

The phase in a project or process where strategies are developed and plans are made to tackle objectives or problems.

Preapproach

The stage in the sales process where initial research about a potential customer is conducted before making contact.