GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Average Proportion to Consume
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Average Propensity to Consume
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Alternate Propensity to Consumption
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Average Propensity of Consumers
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Detailed explanation-1: -What Is Average Propensity to Consume? Average propensity to consume (APC) measures the percentage of income that is spent rather than saved. This may be calculated by a single individual who wants to know where the money is going or by an economist who wants to track the spending and saving habits of an entire nation.
Detailed explanation-2: -The formula for average propensity to consume is as follows: Average Propensity to Consume = Consumption/Total Disposable Income. Thus, abbreviated as APC = C / DI.
Detailed explanation-3: -Average Propensity to Consume (APC) is the ratio between total consumption and total income. Marginal Propensity to Consume (MPC) is the ratio between additional consumption and additional income. Indicates. Consumption per unit of total income.