Discuss the Differences Between Line, Line-And-Staff, and Matrix Organizations

question 189

Essay

Discuss the differences between line, line-and-staff, and matrix organizations. Identify the advantages and disadvantages of each.

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Definitions:

Induced Consumption

Refers to the portion of consumer spending that increases or decreases in response to changes in income.

Disposable Income

The pot of funds households have at their disposal for saving and spending, post-income tax.

MPC

refers to the Marginal Propensity to Consume, which is the fraction of additional income that a household spends on consumption.

Disposable Income

The cash flow available to households for the purposes of spending and saving after income taxes.