If an Economist Wants to Make a Prediction About the Effects

question 38

Multiple Choice

If an economist wants to make a prediction about the effects of a change in disposable income on the change in consumption spending based on historical data, she must assume that

• A)the future will closely resemble the past.
• B)consumption and disposable income will be negatively related.
• C)the consumption function will have a downward slope.
• D)as disposable income increases, consumer spending will remain constant.

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Definitions:

Compensation System

The complete package of monetary and non-monetary benefits provided by an employer to reward employees.

Business Indicator

Metrics or measures that provide insights into the health and direction of a business.

HRM Audit

A comprehensive evaluation of the HR function's policies, practices, and procedures to assess compliance, efficiency, and effectiveness.

Staffing Activities

The series of actions involved in identifying, attracting, selecting, and hiring individuals to fill job vacancies within an organization.