A Line on a Scatter Diagram That Is Intended to Reflect

question 132

Multiple Choice

A line on a scatter diagram that is intended to reflect the past relation between cost and unit volume is the:

• A) Break-even line.
• B) Margin of safety line.
• C) Contribution margin line.
• D) Standard cost line.
• E) Estimated line of cost behavior.

---

Definitions:

Annually Balanced Budget

A budget in which revenues and expenditures are equal within a single fiscal year, ensuring no deficit or surplus.

Contractionary Gap

A situation where the aggregate output in an economy is below its potential output, leading to unemployment and underutilized resources.

Government Spending

The total amount of public spending by the government, including expenditures on public services, healthcare, education, and infrastructure.

Transfer Payments

Payments made by the government to individuals or other organizations without receiving any goods or services in return.