This is an example of specialization. To enhance productive
efficiency, individuals perform a limited scope of services. That allows
members of a group to focus on tasks under which they are most suited due to
their qualifications or traits. That way, individuals become experts in
particular activities.
Answer: Deficit; higher; a decrease
Explanation:
<em>The term crowding-out effect refers to a situation in which a government </em><em><u>deficit</u></em><em> results in</em><em><u> higher</u></em><em> interest rates, causing </em><em><u>a decrease</u></em><em> in private spending on investment and consumer durables.</em>
The Crowding-out effect is what happens when a Government increases its spending past its revenues and gets a budget deficit. In other to balance its books therefore it will borrow heavily.
If the Government is such a large one like the American Government or the British Government, the borrowing might be so large that it will have the effect of reducing the amount of loanable funds in the market thereby increasing the interest rates due to a reduced supply of loanable funds.
As there are now increased interest rates, it will be more expensive for companies to borrow to spend on investment or for consumers to spend on durables. It will have the effect of <em>crowding out</em> the private sector.
Answer: <em>The following is most likely to occur if Drive-in-Style Motors implements this plan:</em><u><em> Its component parts and sub-assemblies will be replenished only when needed.</em></u>
Here in this case the organization will implement a pull system, pull system is known as a manufacturing strategy that is utilized to bring down waste in the manufacturing process. In this, elements utilized in the manufacturing are replaced once they are consumed.
<u><em>Here, in this case the correct option is (b)</em></u>
Answer:
The price of this stock today is $4.275
Explanation:
The constant growth model of the DDM approach will be used to calculate the price of this stock today. However, as the dividends are falling by a consatnt percentage every year, the growth rate taken will be negative i.e. -5%.
The formula for the price of a stock using this model is,
P0 = D0 * (1+g) / r - g
Thus,
P0 = 0.9 * (1 - 0.05) / 0.15 +0.05
P0 = $4.275