The Concepts and Principles of OB Are Important to Managers

question 55

True/False

The concepts and principles of OB are important to managers because in every organization human beings ultimately make the decisions that control how the organization will acquire and use resources.

---

Definitions:

Marginal Propensity

The ratio of change in an economic variable, such as consumption or saving, to a change in another variable, like income.

Disposable Income

The net income available to individuals or households after taxes have been deducted, available for spending, saving, or investing.

Consumption

The act of using goods and services by households, contributing to the overall demand in an economy.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income.