The 45-Degree Line on a Chart Relating Consumption and Income

question 100

Multiple Choice

The 45-degree line on a chart relating consumption and income shows:

• A)all points where the MPC is constant.
• B)all points at which saving and income are equal.
• C)all the points at which consumption and income are equal.
• D)the amounts households will plan to save at each possible level of income.

Understand the concept and calculation of financial ratios and their implications on a company’s financial health.

Compute and interpret the current ratio to measure a company's liquidity.

Calculate and analyze the price-earnings ratio to evaluate a company’s share performance.

Determine profit margin ratio to assess a company's operational efficiency.

---

Definitions:

Centralisation

The organizational structure where decision-making authority is concentrated at the top levels of management, often resulting in a hierarchy of power.

Decentralisation

Decentralisation is the dispersion of authority to make decisions throughout all levels of the organisation.

Managerial Advice

Guidance or recommendations provided by someone in a supervisory role, intended to improve an individual's or team's performance and decision-making.

Span of Control

The number of subordinates that a manager or supervisor can directly control or oversee effectively.