A Consumer Is a Borrower If

question 5

Multiple Choice

A consumer is a borrower if

• A) optimum current consumption is less than current disposable income.
• B) optimum current consumption is greater than current disposable income.
• C) future disposable income is greater than current disposable income.
• D) the consumer's indifference curves are relatively steep.
• E) the consumer's indifference curves are positively sloped.

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Definitions:

Labor-Intensive Department

A department within a company that relies more on human labor than on machinery or automation to produce goods or provide services.

Capital-Intensive Department

A division within a company that requires a large investment in capital assets relative to its labor cost.

Single Plantwide Factory Overhead Rate

A method of allocating total factory overhead to products based on a single rate, often using total direct labor hours or machine hours.

Plantwide Factory Overhead Rate

A single overhead absorption rate calculated by dividing total factory overheads by total machine hours or labor hours, applied uniformly across all products and services.