Concept of Savings, Investment And Consumption And Their Determinants, APC and MPC, APS and MPS - SS3 Economics Past Questions and Answers - page 1
What is savings?
The portion of income spent on consumption
The portion of income not spent on consumption
The portion of income invested in risky assets
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What is consumption?
The use of goods and services by businesses
The use of goods and services by individuals or households
The use of goods and services by the government
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What is an investment?
The use of resources to purchase consumer goods
The allocation of resources to long-term projects or assets
The use of resources to pay off debt
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What is MPS?
The portion of an additional dollar of income spent on consumption
The portion of an additional dollar of income saved rather than spent on consumption
The percentage of total income spent on consumption
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What is APC?
The portion of an additional dollar of income spent on consumption
The portion of an additional dollar of income saved rather than spent on consumption
The percentage of total income spent on consumption
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Why is savings important for individuals?
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How does consumption drive economic growth?
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What is the relationship between MPC, MPS, APC, and APS?
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How can understanding MPC, MPS, APC, and APS help economists and policymakers?
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