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.

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Definitions:

Materials

Basic components or raw substances used in manufacturing processes or production.

Generating Revenues

Generating revenues involves engaging in activities that bring income to a business, such as selling goods or providing services.

Cost

The total amount of money spent on the production, acquisition, or maintenance of goods and services.

Direct Labor Cost

The total expense that a company incurs for employees who directly work on manufacturing products or performing services, including wages, benefits, and payroll taxes.