Answer:
A. Opportunity Cost
Explanation:
Choice affecting an economic system, market can be studied by : Macro Economics which studies Economy as 'a whole'.
On contrary, Microeconomics studies individual units of economy & marginal analysis is a tool used frequently in it. And ,Normative Economics reflects subjective non verifiable statements about how economy 'should be'.
So , all of three are not apt to analyse the above statement.
However, Opportunity Cost reflects cost of next best alternative sacrifised while making an economic choice. So ,it is useful to analyse 'choice' affecting an economic system, market. Eg :Opportunity cost is an important tool used in determining comparative advantage of a country in producing a good based on its opportunity cost (other good sacrifised to produce it).
Answer:
c. What is the impact of foreign competition on the U.S. auto industry?
Explanation:
Economic theory is divided into two broad areas: macroeconomics and microeconomics.
Macroeconomics discusses large economic aggregates, such as income, inflation, and employment variations. It is an approach that aims to discuss these factors and bring about improvements through economic policies.
In turn, microeconomics deals with micro factors, such as the behavior of consumers and companies, including in relation to competitive structures. Therefore, item (D) deals with microeconomics and not macroeconomics.
Answer:
-2.33
Explanation:
The computation of the price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of quantity demanded)
where,
Change in quantity demanded would be
= Q2 - Q1
= 5,000 - 2,500
= 2,500
And, average of quantity demanded would be
= (5,000 + 2,500) ÷ 2
= 3,750
Change in price would be
= P2 - P1
= $0.45 - $0.60
= -$0.15
And, average of price would be
= ($0.45 + $0.60) ÷ 2
= 0.525
So, after solving this, the price is -2.33
Answer:
A. Exporting
Explanation:
The exporting is the process in which the firm or the company sell its products to the foreign inventory with a hope to increase the sales and covers the foreign with a set time which results into increase in high sales and high profits.
Here, the seller is known as exporter while the foreign buyer is known as importer
So in the given case, when a firm chooses to build new plants and facilities from scratch in foreign markets so this we called exporting
