Following Is Consumption Schedules for Three Private Closed Economies

question 37

Multiple Choice

Following is consumption schedules for three private closed economies.DI signifies disposable income and C represents consumption expenditures.All figures are in billions of dollars.

-Refer to the above data.At an income level of $400 billion,the average propensity to save in economy (2) is:

• A) .9125.
• B) .0725.
• C) .0875.
• D) .9305.

---

Definitions:

Effective Management

Effective Management involves the process of planning, organizing, directing, and controlling resources and activities efficiently and effectively towards achieving organizational goals.

Operations

The day-to-day activities required for a business to produce goods or services and run smoothly.

Book Value

The net value of a company’s assets as recorded on the balance sheet, calculated as total assets minus liabilities and intangible assets.

Opportunity Cost

The potential benefit that is given up when one alternative is selected over another.