The Figure Given Below Shows the Consumption Function of a Household

question 11

Multiple Choice

The figure given below shows the consumption function of a household.
Figure 9.2

-In Figure 9.2, at any point to the left of point B:

• A) autonomous consumption is less than zero.
• B) saving occurs.
• C) disposable income is negative
• D) consumption is greater than disposable income.
• E) autonomous consumption is zero.

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company. This includes material and labor costs.

Debt-to-Equity Ratio

A financial metric that shows the balance between the equity provided by shareholders and the debt leveraged to support a company's assets.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available for its day-to-day operations.

Long-term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable or long-term loans.