A Curve Shows That Every Time Family Income Increases by $1

question 15

Multiple Choice

A curve shows that every time family income increases by $1, spending increases by $.75. This curve would

• A)have a negative slope with decreasing absolute value.
• B)have a positive slope with increasing absolute value.
• C)have a negative slope with increasing absolute value.
• D)have a positive slope with decreasing absolute value.
• E)be a straight line with a positive slope.

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Definitions:

Finished Goods

Items that have finished being manufactured and are prepared to be offered to consumers.

Manufacturing Cost

The total expense involved in the production of goods, including labor, materials, and overhead costs.

Finished Goods Inventory

The portion of inventory that has completed the production process and is ready for sale.

Work-In-Process Inventory

The value of inventory that has started the production process but is not yet completed.