The Differences Between Lean Producers and U

question 42

True/False

The differences between lean producers and U.S.mass producers in the way they deal with their respective dealers,distributors,and customers are as dramatic as the differences in the way they deal with their suppliers.

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Definitions:

Marginal Propensity

The ratio of change in an economic variable, such as consumption or saving, to a change in another, like income.

Consumption Spending

The total amount of money spent by households and consumers on durable goods, nondurable goods, and services.

Income

Money received, especially on a regular basis, by an individual or business in exchange for providing labor, goods, or services, or through investing.

MPC (Marginal Propensity to Consume)

The proportion of an increase in income that is spent on consumption rather than being saved.