Answer: B. It may help a firm achieve experience curve and location economies
Explanation: Exporting is defined as the act of conveying or sending commodities abroad or to another country, in the course of commerce. Exporting provides a distinct advantage to firms in that it helps them achieve experience curve (which posits that the more experience a business has in the production of product, the lower its costs in producing the product) and location economies (the production of a good or product under the most optimum settings that confers an added advantage in cost of productions over their competitors).
Answer:
A. Identifying and defining the problem
Explanation: Before taking any action in a production environment one must be able to identify and define the problem.
Problem identification and defining is first approach to solving problems as it gives a clear picture of what and how the problem is,when it started and the possible threats it pose to the business entity.
When a manager wants to address a problem, he should first identify the problem,carry out steps that will help him or her to define what the problem is,through this he or she can be able to develop possible solutions.
Answer:
C. downward; rise; decrease; falls; $40 billion
Explanation:
Autonomous investment spending falls by $10 billion . As a result, the TE curve shifts downward , inventory levels unexpectedly rises , business firms decrease the quantity of goods and services they produce , and Real GDP falls by (10/1 - MPC) = (10/1 - 0.75) = 10/0.25 = $40 billion.
The multiplier is the factor by which gains in total output are greater than the change in spending that caused it. It is used in reference to the relationship between investment and total income. Let us with C denote the change in consumption and with Y the change in income. If consumption increases by X then the <span>multiplier is</span>:
multiplier=1/1- spend
4=1/1-spend
1-spend=4 spend=-3
