The following data describes an economy's consumption function. income ($m) consumption ($m) 100 90 140 122 180 154 220 186 What can be deduced about the value of the marginal propensity to consume in this economy? A It increases as income increases. B It decreases as income increases. C It is 0.90. D It is 0.80.
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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