As one's income increases, which term describes the tendency to spend more on entertainment?

The correct term for the tendency to spend more on entertainment as one's income increases is the marginal propensity to consume. This concept reflects the portion of additional income that an individual chooses to spend on consumption rather than saving. As people's income rises, they often feel more comfortable increasing their discretionary spending, which includes entertainment expenses. This behavior illustrates how individuals adjust their spending habits in response to changes in their financial circumstances, highlighting the relationship between income levels and consumption patterns.

In this context, marginal propensity to consume specifically measures the change in consumption that results from a change in income, making it the appropriate choice for this question. The other terms do not accurately capture this specific spending behavior related to income changes.