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.
They are using the Dual income and no kids method
Answer:
E) Trading company
Explanation:
In international trade, trading companies are basically wholesalers that work at an international level. They usually purchase products from different businesses and then resell them to local retail businesses or sometimes final consumers (less common). Trading companies generally enter a exclusive distribution agreement with the manufacturer per region or country that they operate in.
Answer:
Export of labor-intensive products
Heavy investment in building a world-class infrastructure to attract foreign investment
Explanation:
The population of China is the highest in the world, hence they concluded that they needed to use their number to their own advantage by adopting a labor-intensive production technique which enables them to export their products as well as ensuring a higher percentage of the populace is gainfully employed, little wonders how China products are available the world over.
Also, they provided world class infrastructures which serve as incentives for foreign direct investment, for instance Apple moved its main factory to China due to the cheaper and available workforce coupled with the state of the art technological infrastructural development achieved by the Chinese people.
Sales: $914,000
Variable Costs: $498,130
Operating Income: $196,000
Contribution Margin Ratio = ?
Formula:
Contribution Margin Ratio = (Sales – Variable Costs) / Sales
Solution:
Contribution Margin Ratio = ( $914,000 - $498,130) /
$914,000
Contribution Margin Ratio = 45.5% (Answer)