Companies Are Increasingly Reducing the Number of Suppliers They Utilize

question 155

True/False

Companies are increasingly reducing the number of suppliers they utilize, and there is a trend toward single sourcing.

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero, reflecting the basic level of consumption that does not vary with disposable income.

Disposable Income

Monetary provision for households to engage in saving and spending after the imposition of income taxes.

Induced Consumption

Refers to the portion of consumer spending that changes in response to changes in income levels, typically increasing as disposable income rises.

Dissaving

The action of spending more money than received as income, typically by drawing down savings or borrowing.