Answer:
b. spending on goods to be used in future production
Explanation:
There are basically four components of Gross domestic product (GDP) which are as follows
GDP = Consumption spending + investment + government spending + net exports
where,
Net exports would equal to
= Export-import
Here, investment means the investment is done on goods which increase in productivity for the future period so that overall output could be increased
Answer:
a 10% increase in price will reduce the demand and total expenditures on good X by 5%.
Explanation:
<em>Price elasticity of demand(PED) is the degree of responsiveness of demand to a change in price.</em>
<em>Where a percentage change in price produces a more than a proportional change in quantity, we say the product is</em><em> price elastic.</em><em> On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is </em><em>price inelastic</em>
PED is computed as follows:
PED = % change in quantity /% change in Price
So we can apply this formula to this question
0.5 = m/10
m = 0.5 × 10
m = 5.
m= 5%
From the computation above , it is deduced that a 10% increase in price will reduce the demand and total expenditures on good X by 5%.
Answer:
Explanation:
GDP is gross domestic product and NDP is net domestic product.
GDP measures market value of total goods and services produced in a particular period of time.
NDP is net domestic product . In its calculation, we deduct the value of depreciation of capital goods produced from the value of GDP.
So
NDP = GDP - depreciation .
So growing gap between GDP and NDP reflects the increasing obsolescence of capital goods , which warrants replacement of capital goods .
OPTION A is correct.
Answer:
WHY should Wearable Wishes (WW) compete with Zara especially in it's U.S. Market Base?
- Should Zara succeed in taking over most or all of the market share in the US, this would negatively impact Zara whilst strenghtening Zara to compete against WW in other markets. All they need do is modify their strategy to suit the demographics and psychograhics of the other markets where WW is present.
- Zara's US market is huge. Besides, if it's accepted there, the chances are that it will be accepted in other markets globally.
Therefore, WW's interest in the US must be preserved by initiating and sustaining strong competition against Zara for the US market.
HOW The best place to start from would be to execute a SWOT analysis for both companies if possible. WW should be concerned about how it can leverage a combination of its strengths and opportunities to outsmart Zara and woo the market over to its side whilst reducing or minimizing its weaknesses.
Another tool that will be very relevant in the above excercise is the Potters 5 Forces Framework/Analysis.
The above tool looks at competitive rivalry from the following perspectives:
- The ease with which potential competition can enter the market
- The influence of suppliers in the industry
- Substitute goods
- The influence of buyers in the industry
One key advantage that WW has over Zara is that Zaras offerings are limited to: Men, Women, Kids, Shoes and Bags. WW, on the other hand, provides all the above and more. Their include: Toys, threats and even animal items.
Cheers!
Answer:
<u>c. The board has a majority of insiders from company management on it who bring first-hand knowledge of how the company operates. </u>
<em>Explanation</em>:
When the board members consist to a large extent members who are insiders of the company, <u>their ability to govern the company is improved.</u>
This is evident from the fact that this members bring first-hand knowledge of how the company operates to the board. However, if majority of the board are outsiders they may not fully be aware of company operations.
