Edrice Was Hired as a Business Consultant for a Company

question 14

Multiple Choice

Edrice was hired as a business consultant for a company that is floundering. Which of the following actions would Edrice need to take in order to change the company's fortunes?

• A)advise middle-manager on better ways to use resources
• B)monitor the effectiveness of non-managerial employees
• C)convince the CEO to change course and adopt a new approach
• D)listen to the complaints of first-line managers

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Definitions:

Disposable Income

The total amount of money available for an individual or household to spend or save after taxes have been deducted.

Consumption

The use of goods and services by households, constituting one of the major components of GDP.

APC

Average Propensity to Consume, which is the fraction of income that is consumed rather than saved.

MPS

The marginal propensity to save refers to the portion of each additional dollar of income that is set aside for savings instead of being spent.