Use the Figure Below to Answer the Following Questions

question 25

Multiple Choice

Use the figure below to answer the following questions.
Figure 11.1.1
This figure describes the relationship between consumption expenditure and disposable income for an economy.
-Refer to Figure 11.1.1.When disposable income is $200 billion,

• A)households are saving an amount equal to line segment AB.
• B)households are dissaving an amount equal to line segment AB.
• C)households are consuming less than $200 billion.
• D)businesses are spending more than households because the consumption function lies above the 45° line.
• E)saving is greater than consumption expenditure.

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Definitions:

Functional Lines

The demarcation of responsibilities and tasks in an organization based on specific functions such as marketing, finance, or human resources.

Functional Expertise

Specialized knowledge or proficiency in a particular area or discipline within a professional context.

Economies of Scale

The cost advantage that arises with increased output of a product, leading to a lower cost per unit.

M-Form Organization

A structure for corporations characterized by decentralized divisions, where each operates as an individual profit center, allowing for specialization and efficiencies across the organization.