On a Profit-Volume Graph, the Profit Line Intersects the Horizontal

question 47

Multiple Choice

On a profit-volume graph, the profit line intersects the horizontal axis at

• A)the origin.
• B)the break-even point.
• C)a volume of 1,000 units.
• D)a point where profit is greater than zero.

---

Definitions:

Interest Rates

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender, indicative of the cost of borrowing.

Aggregate Demand

The overall demand for all the goods and services in an economy, reflecting the economic activity and consumer spending power.

Keynes's Followers

Individuals or economists who support or develop the theories of John Maynard Keynes, relating to government intervention in the economy to manage aggregate demand.

Monetary Policy

Actions of a central bank, currency board, or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates.