For Levels of Disposable Income to the Left of the Point

question 79

Multiple Choice

For levels of disposable income to the left of the point where consumption intersects the 45-degree line

• A)Saving is negative.
• B)Disposable income exceeds consumption.
• C)Saving equals disposable income.
• D)Consumption equals disposable income.
• E)Saving equals consumption.

---

Definitions:

Labor

The human effort, both physical and mental, used in the production of goods and services, a critical factor in determining productivity and economic output.

Output

Output refers to the total quantity of goods and services produced by an economy or business in a specific period.

Marginal Product

The supplementary yield achieved by the utilization of one additional unit of a variable factor, with all other resources remaining fixed.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent or salaries, over a relevant period.