A Large Decrease in Australia's Share Market Index May Cause

question 83

Multiple Choice

A large decrease in Australia's share market index may cause:

• A) an increase in consumption to compensate.
• B) an increase in investment to compensate.
• C) a decrease in consumption.
• D) a large increase in economic growth.

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Definitions:

Fixed Cost

A cost that does not change with the level of output or sales over a certain period, such as rent or salaries.

Sales Volume

The quantity of units sold by a company within a specific time period.

High-low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing with the level of output but not in direct proportion.