A. Money market through borrowing and saving by households and businessesB. Public sector through the mechanism of central planningC. Business sector through the mechanism of advertisingD.Private sector through the earning and spending of income
Private sector through the earning and spending of income
Answer: Option D.
<u>Explanation:</u>
A market economy is a monetary framework wherein the choices in regards to venture, creation and dissemination are guided by the value signals made by the powers of organic market.
The meaning of a market economy is one in which cost and creation is constrained by purchasers and dealers uninhibitedly leading business. A case of a market economy is the United States economy where the speculation and creation choices depend on organic market.
Answer:
1. Apart from helping to know the average cost of a product, analyzing fixed and variable cost will help to derive the break even point.
2. Profit will go down
Explanation:
1. The size of the selling price and the variable cost determine contribution per unit of a product. Contribution per unit is Price minus variable cost. This shows the contribution of sales revenue towards covering the fixed cost of a product.
2. Relevant range is the estimated or budgeted activity level which defines a business volume of production or operation, it is both maximum and minimum threshold within which the entity must operate to expect certain level of cost and revenue.
Sometimes fixed costs are fixed within a relevant range of activities and outside such range, fixed cost may become variable, which will all things being equal impact negatively on the price.
Also, within relevant range volume discount may be achieved and outside such range, this may be forfeited which, will also reduce profit all things being equal.
Answer:
The best depiction of the information level given to a department manager versus that reported to a company vice-president is:
Department Manager Company Vice-President
B. Somewhat detailed Somewhat summarized
Explanation:
At the operational level of the organization, the information requirement is for detailed data to help the department manager act on operational decisions. At the tactical level where the vice-president operates, the information requirement is for data that is somewhat summarized but not too detailed. The highest level of the organizational hierarchy is the strategic level, where information requirement concentrates on detailed reports and not detailed data but highly summarized data.
Answer:
The correct answer is when to buy.
Explanation:
When a consumer has checked all the alternatives and has made the purchase decision of what to buy, he still needs to decide from whom to buy and at what time or when to buy. This is because the price of assets or goods keeps changing with the passage of time. The change in price depends on market situations at that time.
There are a number of factors that affect the price level in the market. For instance,
- Income level
- Business cycle
- Interest rates
Changes in these factors cause a change in the price of goods and services and other assets.