In the Just-In Time System, the Firm Attempts to Keep

question 4

Multiple Choice

In the Just-in time system, the firm attempts to keep inventory levels to the______ throughout the value chain from raw materials to finished goods

• A) Maximum
• B) Minimum
• C) Zero
• D) Negative

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Definitions:

Disposable Income

Net funds allocated to households for their spending and saving post the application of income taxes.

Consumption

Consumption is the act of using goods and services by households or individuals.

MPS

Marginal Propensity to Save, expressing the portion of additional income that a household saves rather than spends.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for. It is a key indicator of economic health and consumer spending.