PROPENSITY to Consume & Save

which of the following can have a negative value?

• APC

• APS

• MPC

• MPS

Average propensity to consume is_____________ at point B and average propensity to save is ____________ at point A.

• 0,1

• 1,0

• 1,1

• 0,0

The value of ________ can never be negative , while _________ can have a value equal to one.

• APS,APC

• MPC,APS

• APC,APS

• MPS,APC

Break- even point in the following diagram is represented by:

• point B

• point A

• both

which of the following expression is correct?

• APC=Consumption/ national income

• APC= change in consumption/change in national income 

• APC=APS-1

• APC=national income/consumption

____________ refer to the ratio of change in saving to change in total income.

• MPS

• MPC

• APC

• APS

The most important determinant of consumer spending is _______________.

• the level of household debt.

• consumer expectations.

• the stock of wealth.

• the level of income.