The question is incomplete. The complete question is stated below.
If the marginal propensity to consume is equal to 0.85, then a $500 increase in disposable income leads to a:
a. $400 increase in consumption spending
b. $75 increase in consumption spending
c. $425 increase in personal saving
d. $75 increase in personal saving
Answer:
If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving. Thus, option D is the correct answer.
Explanation:
The marginal propensity to consume or MPC is the percentage of the additional income that will be used for consumption spending. It is a concept that is used to calculate how much of an increase in income will be used in consumption and saving. The formula to calculate MPC is,
MPC = Change in consumer spending / Change in income
0.85 = Change in consumer spending / 500
500 * 0.85 = Change in consumer spending
Change in consumer spending = $425
If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving.
Macroeconomics is important because it allows the public to understand the economy as a whole, fiscal policy and global economic policy.
Answer:
Stop working and add the incomplete feature back into the backlog.
Explanation:
In case a task could not be completed in the current iteration, it is best to add it to the backlog, so that in subsequent iterations it will be completed (giving it priority, of course).
Of course, it is not convenient to extend the iteration time just to finish the incomplete task. Also, we should not add it directly to the next iteration because we would be altering its structure. So the most appropriate thing to do, is to leave it marked as a priority to be included in the next iterations.
Answer:
Disadvantages of a Line Organization
A line organization can suffer from a lack of specialization. This is because each department manager is concerned only with the activities of his own department. Therefore, employees are skilled in tasks pertaining to their departments alone.
These organizations can overburden a keyman or a few key-men to the extent of their breaking point. Also, in the absence of a staff aid, if a strong man seizes the organization, he can run it arbitrarily. Such arbitrary power can lead to a considerable damage to the organization.
Such organizations usually suffer from a lack of expert advice. If the line manager has trouble making a decision, there is no expert staff that he can turn to.
A line organization is usually rigid and inflexible. In fact, such organizations maintain discipline so rigorously that they can rarely change.
These organizations are based on the autocratic system of management.
The division of work is not based on any scientific plan but on the whims of the manager.
It might stop progress and prevent the unit to work effectively.
Such organizations might also encourage nepotism or favoritism based on relationship or friendship.
I hope this is helpful information.
