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:

Price of Labor

The compensation, including wages, salaries, and benefits, that employers pay to employees for their labor or work done.

Long-Run Cost Function

A representation of the total cost associated with production when all factors of production are variable.

Positive Amount

A value greater than zero, often used in financial and mathematical contexts to denote an increase or positive quantity.

Total Cost Functions

Mathematical representations that describe how the total cost of production changes as the output level varies.