The Vertical Intercept of the Consumption Function That Represents the Portion

question 2

Multiple Choice

The vertical intercept of the consumption function that represents the portion of consumption expenditure not associated with a level of disposable income is known as:

• A) zero income intercept.
• B) disposable income intercept.
• C) autonomous consumption.
• D) automatic consumption line.

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Definitions:

Fixed Asset Turnover Ratio

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Sales Earned

Income a company recognizes after delivering goods or services to a customer, reflecting actual earnings from sales.

Intangible Assets

Non-physical assets that have value, such as intellectual property, trademarks, goodwill, and brand recognition.

Amortization

The gradual reduction or the expensing of an intangible asset's cost over its useful life, similar to depreciation for tangible assets.