Question Details

Detailed explanation and options for the selected question.

What is meant by “marginal propensity to consume”?

A. The total amount consumed out of total income
B. The fraction of additional income spent on consumption
C. The amount saved from total income
D. The proportion of income spent on necessities

Explanation:

Marginal propensity to consume is the fraction of additional income that is spent on consumption. It differs from total or necessity-based spending.

Related Topics

Health Sector: Financing and Delivery

Revision Notes

Make in India 2.0

Revision Notes

Renewable Energy and Green Transition

Revision Notes

Startup Ecosystem and Entrepreneurship

Revision Notes

Banking Sector in India

Revision Notes

Women and the Indian Economy

Revision Notes

Cooperative Federalism and Economic Coordination

Revision Notes

Gold Economy and Monetization Schemes

Revision Notes

Social Sector Schemes and Welfare Programs

Revision Notes

Blue Economy and Coastal Development

Revision Notes