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

Migration, Urbanization, and Economic Development

Revision Notes

Startup Ecosystem and Entrepreneurship

Revision Notes

National Infrastructure Pipeline (NIP)

Revision Notes

Research & Development and Innovation

Revision Notes

Climate Change: Challenges and Strategies

Revision Notes

Demographic Dividend and Labor Force

Revision Notes

Shadow Banking and NBFC Sector

Revision Notes

Social Stock Exchanges

Revision Notes

Infrastructure Financing Mechanisms

Revision Notes

Digital Governance Initiatives (eGovernance)

Revision Notes