Differentiate between the average propensity to consume and the marginal propensity to consume.
What will be an ideal response?
The average propensity to consume is defined as the relationship of the amount consumed to the level of income; it is (consumption)/(income). The marginal propensity to consume is a measure relating the change in consumption resulting from a change in income to that change in income; it is (change in consumption)/(change in income).
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Define the term price discrimination. What conditions must hold for a firm to be able to practice price discrimination? How are consumers affected by price discrimination?
What will be an ideal response?
Which of the following is closest to the future value of a $40,000 deposit earning 3 percent interest annually after 5 years?
A. $41,282 B. $46,021 C. $46,371 D. $41,150
Who is hurt and who benefits from inflation? Why?
.The law of comparative advantage implies that a nation, individual, or region should trade for those economic goods for which it
What will be an ideal response?