Average propensity to consume (APC) (平均消费倾向)

The average propensity to consume (平均消费倾向 píng jūn xiāo fèi qīng xiàng) measures the percentage of income consumed. It is calculated by dividing total consumption (C) by total disposable income (Y) in a given period.

  • Formula: APC = Consumption / Income.

Part 1: Breakdown of Words

“Average” (平均 píng jūn) as in “average price” (平均价格 píng jūn jià gé), “average lifespan” (平均寿命 píng jūn shòu mìng). 

“Consumption” (消费 xiāofèi) as in “tobacco consumption” (烟草消费 yān cǎo xiāo fèi), “daily consumption”(日常消费 rì cháng xiāo fèi), or “inpusive consumption” (冲动消费 chōng dòng xiāo fèi). 

“Propensity” (倾向 qīng xiàng) as in “propensity for violence” (暴力倾向 bào lì qīng xiàng), or “criminal propensity” (犯罪倾向 fàn zuì qīng xiàng). 

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