Figure 9.2 -Refer to Figure 9.2. a Movement from Point B to from Point

question 61

Multiple Choice

Figure 9.2

-Refer to Figure 9.2. A movement from point b to point c could be caused by a simultaneous ________ and ________.

• A) increase in the money supply; increase in the price of oil
• B) decrease in taxes; decrease in the price of oil
• C) increase in taxes; decrease in government spending
• D) increase in the price of oil; massive crop failure

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Definitions:

Unit Sales

The measure of the quantity of individual items sold by a company, as opposed to total revenue.

Break-Even

The point at which total costs and total revenues are equal, resulting in no net gain or loss.

Fixed Expense

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance premiums.

Variable Expense

Expenses that vary directly with changes in production volume or business activity levels.