Answer:
The answer is C.
Explanation:
Gross Domestic Product is the total market value of all final goods and services produced within a country during a given period of time. It is usually a year.
In calculating, GDP, we have expenditure approach, income approach and value-added approach.
In this question, the expenditure approach will be used to explain the answer to this question.
To calculate GDP using expenditure approach, the formula is:
C + I + G + (X-M)
where C is the consumers' spending
I is the investment spending
G is government spending
X is the exports
M is the imports.
The correct answer is C. firms purchases of inventories is part of investment spending. Firms can purchase raw materials(inventory) and process it into finished goods(inventory). The change in inventory(difference between the closing inventory and opening inventory) is part of the calculation of investment spending.
Households buying inventories(finished goods) is part of consumers' spending and not investment spending.
Answer:
economies of scale
Explanation:
Economies of scale are the result of increasing returns to scale, this means that the higher the output, the lower the production costs per unit. This means that large producers will have an advantage over smaller producers which will eventually allow them to make more profits and sell at lower prices. After a while, only large producers that are able to manufacture goods at a low price will exist, e.g. car manufacturers.
Answer:
two tailed and non- directional
Explanation:
A statistical test with a rejection region comprised of both tails of the sampling distribution of the test statistic is called a two tailed and a non-directional test.
<h3>Explaination</h3>
Marketers sometimes forced to reposition their services or products to ensure profitability the company has no other option but to reposition its services or products that would cater to a new target segment of their existing market and ensure sales or profitability.
<h3>Reason</h3><h3 />
There could be many reasons for marketers repositioning their products.
- The products are evolving and getting more features into it. They needs to marketed differently in order to make the customers aware of the new features, add-ons. In this case, it is better to reposition the products.
Answer:
b. contribution margin divided by net income.
Explanation:
The formula to compute the degree of operating leverage is shown below:
= (Sales - Variable costs) ÷ (Sales - Variable costs - Fixed costs)
The (Sales - Variable costs) = Contribution margin
The (Sales - Variable costs - Fixed costs) = EBIT
The EBIT is also known as the net income. EBIT means Earning before interest and taxes
Hence, the correct option is b.