What is the primary idea behind a consumption function?

Understanding the Consumption Function

Interactive Video
•
Mathematics, Business, Social Studies
•
10th - 12th Grade
•
Hard

Emma Peterson
FREE Resource
Read more
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
It describes how investments affect economic growth.
It explains the relationship between taxes and government spending.
It illustrates how aggregate income influences aggregate consumption.
It shows how savings drive consumption.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the hypothetical consumption function, what is the base level of consumption?
100
500
1500
1000
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What percentage of disposable income is spent in the hypothetical model?
70%
40%
60%
50%
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the difference between income and disposable income?
Disposable income is income before taxes.
Disposable income is income after taxes.
Disposable income is income after investments.
Disposable income is income after savings.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why is disposable income used in the consumption function instead of total income?
Because it includes savings.
Because it excludes government spending.
Because it excludes taxes.
Because it includes investments.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the slope of the consumption function represent?
The marginal propensity to save.
The total income of the economy.
The base level of consumption.
The marginal propensity to consume.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the graph of the consumption function, what does the y-intercept represent?
The marginal propensity to consume.
The disposable income.
The base level of consumption.
The total income.
Create a free account and access millions of resources
Similar Resources on Quizizz
11 questions
Fiscal Policy Concepts and Impacts

Interactive video
•
11th - 12th Grade
6 questions
Calculating the Spending Multiplier- Macroeconomics

Interactive video
•
11th Grade - University
11 questions
Understanding Consumption Functions

Interactive video
•
11th Grade - University
11 questions
Understanding the Linear Consumption Function and Taxes

Interactive video
•
11th Grade - University
8 questions
Understanding and Calculating the Multiplier Effect Using the Marginal Propensity to Consume

Interactive video
•
11th Grade - University
11 questions
Fiscal Policy and Economic Impact

Interactive video
•
9th - 12th Grade
2 questions
Understanding Consumption and the Consumption Function

Interactive video
•
11th Grade - University
11 questions
Economic Concepts and Circular Flow

Interactive video
•
11th - 12th Grade
Popular Resources on Quizizz
15 questions
Multiplication Facts

Quiz
•
4th Grade
25 questions
SS Combined Advisory Quiz

Quiz
•
6th - 8th Grade
40 questions
Week 4 Student In Class Practice Set

Quiz
•
9th - 12th Grade
40 questions
SOL: ILE DNA Tech, Gen, Evol 2025

Quiz
•
9th - 12th Grade
20 questions
NC Universities (R2H)

Quiz
•
9th - 12th Grade
15 questions
June Review Quiz

Quiz
•
Professional Development
20 questions
Congruent and Similar Triangles

Quiz
•
8th Grade
25 questions
Triangle Inequalities

Quiz
•
10th - 12th Grade
Discover more resources for Mathematics
40 questions
Week 4 Student In Class Practice Set

Quiz
•
9th - 12th Grade
25 questions
Triangle Inequalities

Quiz
•
10th - 12th Grade
10 questions
Right Triangles: Pythagorean Theorem and Trig

Quiz
•
11th Grade
45 questions
Week 3.5 Review: Set 1

Quiz
•
9th - 12th Grade
17 questions
High School Survival Guide

Lesson
•
9th - 12th Grade