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:

Society's Goals

The collective aims or objectives sought after by a group of individuals living as a community or society.

Efficiently

Pertains to performing or operating in the best possible manner with the least waste of time and effort.

Resources

Various means or inputs (such as labor, capital, land) used in the production of goods and services.

Efficiency

The extent to which resources are used in the most productive way possible to achieve maximum output or outcomes.