Because the Marginal Propensity to Consume Is Positive, the Consumption

question 106

Multiple Choice

Because the marginal propensity to consume is positive, the consumption function is:

• A) horizontal.
• B) upward sloping.
• C) downward sloping.
• D) vertical.

Comprehend the distinctions between task and social leadership and their impacts on workforce morale.

Understand the principles of managing by objectives and setting specific, measurable goals.

Appreciate the contributions of human factors psychology to workplace efficiency and safety.

Grasp the significance of employee engagement in decision-making processes and its effects on morale and decision acceptance (voice effect).

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Definitions:

Business Risk

Variation in a company’s financial performance caused by changes in business conditions.

Operating Leverage

A financial ratio that measures the degree to which a firm or project can increase operating income by increasing revenue, highlighting the impact of fixed costs on profits.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business over a certain period.

Operating Leverage

A financial ratio that measures the proportion of fixed costs to variable costs in a company's cost structure, indicating how revenue growth translates into growth in operating income.