Answer: Efficiency.
Explanation:
An economy is said to be efficient if the economy is able to make the best use of the available resources found in that economy, in meeting the needs of consumers within the economy and even exporting to consumers found in other economies.
Answer: Lack of control over valuable assets
Explanation: In simple words, vertical integration refers to a process under which an organisation combines two or more stages of production which were previously performed by any other company.
The vertical integration is done where the company wants to get more hold on its supply chain with the ultimate objective of having better control over valuable assets.
Hence from the above we can conclude that the correct option is C.
Answer:
The Correct Option is "B"
Explanation:
Total consumption model was created accordingly of traditional model. It shows the connection between the GDP and arranged spending. The condition of consumption model is as per the following:
Y = C + I + G + NX
Where, Y is the genuine GDP, C is Consumption, I Refers to net investment, G is government buys and NX is net ex[port.
The total use model accept that gross investment (I), government buys (G), and net export (NX) are independent to of genuine GDP (Y) as they don't depend on salary of the economy.
The answer is B. Hope this helps.
Answer:
1.The money demand will rise by 1.154%
2. The money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%
Explanation:
1. Money demand function
ln(m) = β0 +β1 ln(GDP)+β2R
Suppose β1 = 1.5 , β2 = −0.04 , GDP = $ 100 & R = 3%
ln(m) = 1.5 ln ($100) - 0.04 X 0.03
ln(m) = 6.91
m = 1002.247
Suppose the GDP increases by 1%; the new GDP will be = $ 101
ln(m) = 1.5 ln ($101) - 0.04 X 0.03
ln(m) = 6.92
m = 1013.81
If the GDP increases by 1% ,the money demand will rise by 1.154%
2.
If the interest rate increases from 3% to 4%
ln(m) = 1.5 ln ($100) - 0.04 X 0.04
ln(m) = 6.906155
m = $ 998.400
If the interest rate rises from 3% to 4% , the money demanded will fall and for a 1% increase in interest , the money demanded will fall by 0.38%
