In Describing the Cost Formula Equation Y = a

question 138

Multiple Choice

In describing the cost formula equation Y = a + bX,which of the following statements is correct?

• A)"X" is the dependent variable.
• B)"a" is the fixed component.
• C)In the high-low method,"b" equals change in activity divided by change in costs.
• D)As "X" increases "Y" decreases.

---

Definitions:

Physical Commodity

Tangible goods such as metals, oil, grain, which are traded on commodity markets and can be physically delivered.

Government Backing

Support or endorsement from a government body, often through policies, subsidies, or direct financial aid.

Gold Standard

A currency where the value is determined by the ability to trade it for a specified amount of gold (i.e., $1 for 1/35 of an ounce) at a government-approved bank.

Currency Value

The worth of a currency in terms of the amount of goods or services that one unit of the currency can purchase.