The Saving Schedule Is Drawn on the Assumption That as Income

question 127

Multiple Choice

The saving schedule is drawn on the assumption that as income increases,

• A) saving will decline absolutely and as a percentage of income.
• B) saving will increase absolutely but remain constant as a percentage of income.
• C) saving will increase absolutely but decline as a percentage of income.
• D) saving will increase absolutely and as a percentage of income.

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Definitions:

Profit-Maximizing Output

The level of production at which a company achieves the highest possible profit margin, given its costs and market demand.

Wage Rate

The amount of money paid to an employee per unit of time, which can be hourly, daily, or annually.

Total Product

The overall amount of products made by a company within a specific timeframe.

Marginal Product

The additional output produced by using one more unit of a variable input, holding other inputs constant.