Answer:
Consumption Function : Relationship between Consumption Spending & Income
Consumption Function Slope = Marginal Propensity Curve (MPC)
Change in Consumption = Change in Income X MPC
Explanation:
Consumption Function is the curve representing relationship between Consumption spending and Income.
C = a + bY ; where :- C = Consumption , Y = Income , a = Autonomous Consumption i.e consumption at 0 level of income , b = MPC i.e additional consumption consumed from additional income = ΔC / ΔY
b = MPC i.e change in C due to additional change in Y = ΔC / ΔY is the slope of Consumption Function
MPC = ΔC / ΔY .
So, change in consumption i.e ΔC = MPC X ΔY
More explanationLike pics or something
1:People have too much money, and there is a danger of inflation. - <span>B contractionary fiscal policy
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2:The GDP has fallen to an all-time low, and there is low demand for most goods. - </span><span>D:expansionary fiscal policy
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3:Few farmers produce cotton because profits are at the equilibrium price. - </span><span>A:price floor
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4:Prices of staple foods have shot up because of shortages after an earthquake. - </span>C:price ceiling
Answer:
57.5%
Explanation:
Data Provided:
Total Sales = $ 200,000
The net income = $ 100,000
Depreciation = $ 20,000
Interest = $ 10,000
Taxes = $ 5,000
Now,
the operating profit is the from the income before the taxes and interest. Thus,
the interest and taxes will be included in the net income for the operating profit
therefore,
The operating profit = income + Interest + Taxes
or
The operating profit = $ 100,000 + $ 10,000 + $ 5,000 = $ 115,000
Now,
the operating profit margin = ( Operating profit / Sales ) × 100
or
= ( $ 115,000 / $200,000 ) × 100 = 57.5%
Answer:
Capability ratio = 1.04166
Explanation:
Given:
Length of a shoe (not deviate) = 1 mm
Standard deviation of this length = 0.32 mm
Number of standard deviations = 3
Find:
Capability ratio = ?
Computation:
Capability ratio = [Length of a shoe (not deviate) / Standard deviation of this length] / Number of standard deviations
Capability ratio = [1 / 0.32] / 3
Capability ratio = 3.125 / 3
Capability ratio = 1.04166
Capability ratio is greater than 1, therefore process is capable.
