Which One of the Following Is an Example of BACKWARD

question 80

Multiple Choice

Which one of the following is an example of BACKWARD integration?

• A) an airline company purchasing a retail clothing store
• B) a personal computer manufacturer opening retail computer sales stores
• C) a local bank opening branch offices in neighboring states
• D) an automobile company opening a plant to manufacture spark plugs

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Definitions:

U.S. Exports

Goods and services produced in the United States and sold to other countries.

Aggregate Expenditure Line

A relationship tracing, for a given price level, spending at each level of income, or real GDP; the total of C + I + G + (X - M) at each level of income, or real GDP.

Marginal Propensity

The ratio of the change in consumption to the change in income, indicating how much consumption will change with a change in income.

Real GDP

The measure of a country's economic output adjusted for price changes, providing a more accurate reflection of an economy's size and growth.