Answer:
Percent of sales.
Explanation:
Percentage of sales approach leads to a peculiar selection. It increases advertising expenditures when business is good, and reduces them when sales are poor.
There are two steps to do the budgeting:
Step 1: past advertising dollars/past sales = % of sales.
Step 2: % of sales X next year’s sales forecast = new advertising budget.
In most cases, it would be reasonable to expect that the reverse should be true if we are to accept the basic definitions of advertising and its sales values.
It is based on the erroneous assumption that "sales cause advertising" whereas the reality is just the opposite (advertising causes sales)
.
Answer:
B. A stationary state in which growth will cease.
Explanation:
Malthus Thomas was a British economist that argued against the utopianism that the human race was believed to be tilting towards in his time. He argued that the every increasing human population that was seen as the happiness of a country will bring the economy to a shut down. He argued that available farmlands which is fixed will not be able to meet up with the ever increasing human population, stating that human population increases geometrically while food production from the fixed amount of farmlands increases arithmetically thus producing a stationary state in which growth will cease.
He was opined that at the end, human population will reach a point where they will not be able to produce enough food for themselves. However, his ideology has been criticized and disproved by other economists citing technology advancement and migration.
Five or six major pharmaceutical companies formed a group in order to control the price of vitamins and adjust their production in the year of 2007. This kind of organization is an example of cartel. A cartel is an organization shaped from a official arrangement among a group of manufacturers of a good or service to standardize supply in an exertion to regulate or manipulate prices. In addition, a cartel is an assortment of otherwise independent businesses or countries that serve together as if they were a single producer and are able to fix values for the goods they manufacture and the services they render in deprived of competition.
Answer: increase - increase - fulfilled
Explanation: The attitude of optimism towards future sales and profits will increase spending on plants and equipments but in turn, there is increase in employment and income and, hence, their expectations are fulfilled.
Answer:
Well, we would simply be reduced to a barter economy. Therefore we would have to trade items for items.
Explanation:
This is the way it is because "Barter" is The exchange (goods or services) for other goods or services without using money. So if we needed beef, we would have to give the person trading the beef something of ours. As for countries who want to trade, if one needs wool, and one needs iron, and country A has Iron and country B has wool They'd barter the two items.
