Answer:
Option C is the answer
Explanation:
The degree of operating leverage is measured by dividing the contribution margin by operating income.
The degree of operating leverage (DOL) is the ratio of contribution margin to operating income. It measures how much the operating income of a company will change in response to a change in sales. A Companies that have higher proportion of fixed costs to variable cost will have greater levels of operating leverage.
Answer: tax revenue
Explanation:
The Laffer Curve was developed by Arthur Laffer and it depicts the relationship that exists between the tax rates and tax revenue.which the government collects.
The curve is typically used to show that there can be an increase in the total revenue for an economy when the tax rate is reduced.
Answer:
The correct answer is option b.
Explanation:
The business cycle can be defined as the fluctuations in the level of output of goods and services produced in an economy in a year. It is also referred to as the trade cycle.
The business cycle consists of several stages such as recession, depression, expansion, boom or peak, recovery, etc.
The output level tends to fluctuate around its long term trend.
