Refer to the Information Provided in Table 22 The Data in the Table Was Used to Estimate the Answer

question 28

Multiple Choice

Refer to the information provided in Table 22.2 below to answer the question(s) that follow.
Table 22.2
$$\begin{array} { | c | c | c | } \hline \text { Point } & \begin{array} { c } \text { Aggregate } \\\text { Income } ( Y ) \end{array} & \begin{array} { l } \text { Aggregate } \\\text { Consumption } ( C ) \end{array} \\\hline \boldsymbol { A } & 10 & 14 \\\hline B & 20 & 23 \\\hline C & 30 & 25 \\\hline D & 40 & 26 \\\hline E & 50 & 34 \\\hline F & 60 & 39 \\\hline\end{array}$$ The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y
-Refer to Table 22.2. The error for point E is equal to

• A) -2.
• B) -1.
• C) +2.
• D) +4.

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Definitions:

Investment

The act of allocating resources, usually money, in the expectation of generating an income or profit.

Absorption Costing

A financial recording technique that entails incorporating all costs associated with manufacturing, whether they are fixed or variable, into the product's pricing.

Selling Price

The amount of money charged for a product or service, typically enough to cover costs and generate profit.

Required Return

The expected gain or loss on an investment over a specified period, factoring in both the risk and the time value of money.