The Saving Function Shows a ________ Relationship Between ________

question 437

Multiple Choice

The saving function shows a ________ relationship between ________.

• A) positive; disposable income and saving
• B) positive; disposable income and dissaving
• C) negative; disposable income and consumption expenditure
• D) negative; real GDP and saving

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Definitions:

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal circumstances.

Sunk Costs

Sunk costs are past expenses that have already been incurred and cannot be recovered, and thus should not affect future business decisions.

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen.

Cost Accounting System

A framework used to record, analyze, and allocate costs associated with a company's operations and production processes.