Along a Linear Consumption Function

question 16

Multiple Choice

Along a linear consumption function,

• A)the average propensity to consume falls with an increase in income.
• B)the marginal propensity to consume rises with an increase in income.
• C)the average propensity to consume rises with income, but the marginal propensity to consume falls with an increase in income.
• D)both the average propensity to consume and the marginal propensity to consume rise with an increase in income.

---

Definitions:

Group Outcomes

The results or consequences of actions taken by a group as a whole, which can affect the group’s cohesion, performance, and individual member's satisfaction.

Less Accountable

Refers to a reduced sense of responsibility or obligation to justify one's actions or decisions to others.

Social Loafing

The tendency for individuals to exert less effort when working in a group than when working alone.

Group Behavior

The ways in which people's behaviors are influenced when they are in groups, including how they interact and make decisions.