If Big Scoops, a Local Ice Cream Parlor, Purchases Milk

question 23

Multiple Choice

If Big Scoops, a local ice cream parlor, purchases milk from a grocery store to make their ice cream, this is an example of______ .

• A)outsourcing
• B)using a spot market
• C)backward integration
• D)forward integration

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Definitions:

Implicit Marginal Tax

The incidental tax effect on an individual’s additional income due to loopholes, deductions, or exemptions in the tax system.

Welfare Benefits

Financial or material support provided by governments to individuals or families in need, typically aimed at reducing poverty and boosting social welfare.

Earned Income

Income derived from active work, including wages, salaries, tips, and other forms of compensation.

Income Inequality

A measure of the extent to which income is distributed unevenly among a population.