A 45-Degree Line on a Graph with Expenditures,E,on the Vertical

question 146

Multiple Choice

A 45-degree line on a graph with expenditures,E,on the vertical axis and production,Y,on the horizontal axis,represents

• A)the line of disequilibrium levels of income.
• B)all possible equilibrium levels of production and expenditures.
• C)some of the equilibrium levels of production and expenditures.
• D)None of the above.

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Definitions:

Operating Income

This is the profit realized from a business's core operations, indicating the financial health of the business by excluding the effects of financing and investments.

Fixed Assets

Long-term tangible pieces of property or equipment a company owns and uses in its operations for generating income.

NPV

Net Present Value; a calculation used to determine the value of an investment by discounting future cash flows to present terms.

Land

Immovable property comprising the ground, along with any natural or artificial structures on it, not including movable assets.