Economics Multiple Choice Question – 2 August 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Christine initially has a disposable income of £500 a week and spends £400.

Christine’s disposable income then rises to £750 a week and her spending to £500.

What is Christine’s marginal propensity to consume?

Select ONE answer:

  1. 0.4
  2. 0.6
  3. 0.67
  4. 1.0

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

  1. Correct: mpc is ∆C/∆Y = 100/250.
  2. Incorrect: This is mps. ∆S/∆Y = 150/250.
  3. Incorrect: This is apc. C/Y = 500/750.
  4. Incorrect: This is the new spending/original income. 500/500.

 

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