The Graph Above Shows the Relationship Between Consumption and Income

question 3

Multiple Choice

The graph above shows the relationship between consumption and income. The ratio LM/PL would be a measure of the:

• A) Marginal propensity to consume
• B) Marginal propensity to save
• C) Average propensity to consume
• D) Average propensity to save

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Definitions:

Internal Integration

A shared identity with agreed-upon methods of working together.

Organizational Survival

Refers to the ways in which a company maintains its existence and sustains its operations over time in a competitive marketplace.

External Adaptation

The process by which an organization or group adjusts and responds to changes and challenges in its external environment.

Competition

The rivalry between entities to achieve superiority in a specific area, often leading to innovation and improvement.