Answer:
1. Price ceiling, Binding
2. Price ceiling, Binding
3. Price floor, binding
Explanation:
Price ceiling is a government or group control limit on how high a product, commodity or service can be charged.
Price floor is a government or group limit on how low a product, commodity or service can be charged.
Binding simply means you are legally bound to something while non-binding means you are not legally bound to it.
Answer: b. Foreign direct investment.
Explanation: This is when a firm or business owns more than 10% of a a foreign company.
A foreign direct investment can be made by getting a lasting interest or by expanding one’s business or company into a foreign country.
The lasting interest makes Foreign Direct Investment from foreign portfolio investments, where investors passively hold securities from a foreign country.
Answer:
The correct answer is 35%.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the Weighted average contribution margin ratio by using following formula:
weighted-average contribution margin ratio = (Contribution margin ratio × Sales of sporting goods) + (Contribution margin ratio × Sales of sporting gears)
= ( 30 × 75% ) + ( 50 × 25%)
= 22.5% + 12.5%
= 35%
Answer:
C. to invest in stocks and make business decisions
Answer:
$750
Explanation:
If I pick $1,000, and the Marginal Propensity to Consume (MPC) is 0.75, it means that while travelling the state, I will have spent $750 on goods and services either produced and traded in that state, or only traded in that state (while having been produced in other place). This is the total impact that I will have made on the economy of this state.
The remaining $250 that I will have saved will only impact the economy of the state if I deposit or invest the money in a financial institution located in the state. If instead, I invest those saving in some other state, or put the money under the mattress in my house (located in another state), my savings will not impact the economy of the state in any way whatsoever.
