Concept of Savings, Investment And Consumption And Their Determinants, APC and MPC, APS and MPS - SS3 Economics Past Questions and Answers - page 1
1
What is savings?
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A
The portion of income spent on consumption
B
The portion of income not spent on consumption
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C
The portion of income invested in risky assets
2
What is consumption?
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A
The use of goods and services by businesses
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B
The use of goods and services by individuals or households
C
The use of goods and services by the government
3
What is an investment?
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A
The use of resources to purchase consumer goods
B
The allocation of resources to long-term projects or assets
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C
The use of resources to pay off debt
4
What is MPS?
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A
The portion of an additional dollar of income spent on consumption
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B
The portion of an additional dollar of income saved rather than spent on consumption
C
The percentage of total income spent on consumption
5
What is APC?
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A
The portion of an additional dollar of income spent on consumption
B
The portion of an additional dollar of income saved rather than spent on consumption
C
The percentage of total income spent on consumption
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6
Why is savings important for individuals?
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7
How does consumption drive economic growth?
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8
What is the relationship between MPC, MPS, APC, and APS?
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9
How can understanding MPC, MPS, APC, and APS help economists and policymakers?
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