O Levels Economics (2281)•2281/13/O/N/20

Explanation
Savings positive when income exceeds total spending
Steps:
- Identify savings as income minus total household spending from the table.
- Compute savings for $3000: spending exceeds income, so negative.
- Compute savings for $3600: income now exceeds spending, so positive.
- Confirm higher incomes (4200) also yield positive savings, but $3600 is lowest.
Why B is correct:
- At $3600, savings first become positive per the table's spending-income relationship.
Why the others are wrong:
- A: Savings negative at $3000 as spending > income.
- C: Not lowest; savings positive but $3600 is smaller.
- D: Not lowest; savings positive but $3600 is smaller.
Final answer: B
Topic: Households
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