The Average Propensity to Consume Is the

question 48

Multiple Choice

The average propensity to consume is the

• A) percentage of total disposable income consumed.
• B) rate at which real disposable income changes as autonomous consumption changes.
• C) ratio of changes in planned consumption to changes in real disposable income.
• D) slope of the consumption function.

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Definitions:

Generic Human Capital

Skills and knowledge that are not specific to a particular job or company but are valuable across different roles and industries.

Human Capital Theory

An economic theory which posits that investing in education and training enhances the productivity and efficiency of individuals, hence contributing to a country's economic development.

Firm-specific Human Capital

The unique skills, knowledge, and experiences that employees develop in a particular company, which are valuable to that company but not easily transferable to other firms.

Financial Returns

Financial returns are the profits or losses generated from an investment over a specific period, expressed as a percentage of the original investment.