The Figure Given Below Shows the Consumption Functions of an Economy

question 4

Multiple Choice

The figure given below shows the consumption functions of an economy. Figure 9.4 Refer to Figure 9.4.Which of the following could explain a downward shift of the consumption function from C₁ to C₃?

• A)An increase in household wealth
• B)A decrease in the proportion of young people in the population
• C)An increase in the size of the population
• D)A decrease in consumer confidence
• E)An autonomous decrease in saving

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Definitions:

Sweets And Fats

Foods high in sugar and fat content, often associated with pleasure eating and potential health risks when consumed excessively.

Adaptive Flexibility

The ability to adjust and modify behavior or thinking in response to changing environments or situations.

Human Fitness

A state of health and well-being that is achieved through regular physical activity, proper nutrition, and adequate rest.

Neuroticism

A personality trait associated with negative emotions like anxiety, depression, and irritation, often reflected in emotional instability.