Match the Following Terms with the Appropriate Definition

question 16

Multiple Choice

Match the following terms with the appropriate definition.
-guarantees the repair or replacement of defective goods during a specified period following the sale

• A)accrued liabilities
• B)contingent liabilities
• C)current liabilities
• D)interest rate
• E)liabilities
• F)payroll taxes
• G)sales taxes
• H)warranty
• I)withholdings

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Definitions:

Disposable Income

Disposable income refers to the amount of money that individuals or households have available for spending and saving after income taxes have been accounted for.

Autonomous Consumption

The level of consumption that occurs when income is zero, reflecting the expenditure necessary to meet basic needs.

Saving Function

Is an economic concept describing the relationship between saving and income, indicating how changes in income levels affect the amount of money individuals save.

Consumption Function

A macroeconomic expression that defines the relationship between total consumer expenditures and gross national income, indicating how income affects spending patterns.