The concept of 'Average Propensity to Consume' is defined as:
A. Change in saving divided by change in income
B. Change in consumption divided by change in income
C. Total consumption divided by total income
D. Total saving divided by total income
Answer: Option C
Solution (By JKSSB Mock Tests)
Average Propensity to Consume (APC) = Total Consumption / Total Income. Marginal Propensity to Consume is the change in consumption divided by the change in income.
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