Accounting Multiple Choice Question – 30 June 2025

The marginal propensity to consume measures?

Select ONE answer:

1. The relationship between changes in consumption and changes in consumer utility
2. The proportion of household incomes spent on consumer goods
3. The proportion of total national income spent on consumer goods
4. The relationship between changes in income and changes in consumption

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > The relationship between changes in income and changes in consumption.

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