The Costs for Firms Operating on a Global Scale Have

question 59

Multiple Choice

The costs for firms operating on a global scale have been drastically reduced by

• A) networking technology.
• B) investments in organizational complementary assets.
• C) the Internet.
• D) the rise of digital content.

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Definitions:

Disposable Income

Households' budget for spending and savings after the necessary income taxes have been deducted.

Induced Consumption

Consumer spending that increases as disposable income rises, and decreases as income falls.

Disposable Income

Net resources for spending and saving available to households after subtracting income taxes.

MPC

MPC, or Marginal Propensity to Consume, is the proportion of additional income that an individual spends on consumption.