Answer:
D) Dogs
Explanation:
As Keplem has a business unit in the insurance sector where the insurance sector is a slow-growing industry, and Keplem does not have a large market share in the industry. In the context of the BCG matrix, Keplem's business unit can be categorized as Dogs. Dogs are the low share and low growth business and products. They can generate enough profits and cash to support only themselves but they are not the sources of huge profits and cash. Organization want to harvest the dogs from their SBUs and eliminate them from their product portfolio, therefore, Keplem is in need to thinking seriously whether he should continue this business or what other business he can enter or what is required to be done with this current business in order to make it a star and then a Cash Cow which are highly profitable businesses and products.
Answer: c.) hire less labor and rent more capital
Explanation:
To answer this we would need to find out the Marginal cost per dollar of producing with either form of production being labour or capital.
The Marginal Product of Labour is 20 units resulting from $4 dollars so that means that for every dollar spent on Labour we get,
= 20/4
= 5 units of output.
However, The Marginal Product of renting Capital is 30 units resulting from $5 dollars so that means that for every dollar spent on Capital we get,
= 30/5
= 6 units of output.
This means that renting Capital is more efficient because we get 1 more unit of output per dollar and so to minimize cost of production without changing the level of output, the firm should hire less labor and rent more capital.
Answer:
<em>Suppose the economy is initially in equilibrium, when a decrease in</em><em> </em><u><em>Savings </em></u><em>decreases total leakages out of the economy. </em>
Savings are considered leakages in the economy because the represent money that is not spent but rather saved.
<em>Which of the following will occur as a result of this change?</em>
<em>GDP rises above planned spending.</em>
Savings reduces spending but as savings have reduced, there will be more spending which is unplanned and so this increase in unplanned spending will make GDP higher than planned spending.
Injections and leakages are equal to each other <u>when real GDP is equal to aggregate expenditure. </u>
Injections and leakages are equal when the output (GDP) and the Aggregate expenditure are the same.
