Which of the Following Is an Illustration of a Company

question 52

Multiple Choice

Which of the following is an illustration of a company that has vertically integrated?

• A) A computer manufacturer that acquires its computer components supplier
• B) A computer manufacturer that acquires warehouses to aid in its product distribution
• C) A computer components supplier that begins to assemble computers for sale to consumers
• D) All of these

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Definitions:

Price Index

An index number that shows how the weighted-average price of a “market basket” of goods changes over time relative to its price in a specific base year.

Real Wage

The purchasing power of a person's earnings, accounting for inflation, defining what goods and services can actually be bought with wages.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, intended to represent the monthly change in the price level experienced by consumers.

Nominal Wage Rate

The wage rate paid to employees unadjusted for inflation, representing the amount of money received per unit of time.