-The Above Figure Plots Income and Consumption in a Nation

question 280

Multiple Choice

-The above figure plots income and consumption in a nation. In 2007

• A) consumption was equal to $25,000 and income was equal to $25,000.
• B) consumption was equal to $27,000 and income was equal to $31,000.
• C) consumption was equal to $28,000 and income was equal to $25,000.
• D) consumption was equal to $25,000 and income was equal to $28,000.

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Definitions:

Units

Refers to a standard quantity or measurement used for comparison and calculation, such as in physics or mathematics.

Month

A unit of time, approximately 30 days, used as a standard measurement for billing cycles, budgeting, and financial forecasting.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor costs.

Net Income

The total profit of a company after subtracting all expenses from revenues.