Question on: JAMB Economics - 2020
If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?
A
0.20
B
0.80
C
1.25
D
2.00
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Correct Option: B
Average Propensity to Consume (APC) is a measure of the percentage of income that is spent rather than saved.
APC = C / DI
Income = 500
consumption = 400
\(\frac{400}{500}\) = 0.8
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