In Addition to Advising the President,one Duty of the Council

question 29

Multiple Choice

In addition to advising the president,one duty of the Council of Economic Advisers is to

• A)prepare the federal budget.
• B)write government regulations.
• C)advise Congress on economic matters.
• D)write the annual Economic Report of the President.

---

Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs a company has.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's earnings before interest and taxes (EBIT) to a percentage change in sales, indicating the impact of fixed costs on profits.

High-low Method

The high-low method is an accounting technique used to estimate the variable and fixed costs of a business based on the highest and lowest levels of activity.