Consider a Business That Can Be Run Using a Make-To-Stock

question 58

Multiple Choice

Consider a business that can be run using a make-to-stock or make-to-order process. Further suppose that your demand is 10,000 per month and is spread out during the month. Capacity of both processes is 15,000 per month. Based only on this information, what would be the best choice?

• A) Choose make-to-stock process.
• B) Choose make-to-order process.
• C) Install an assembly line.
• D) Raise prices in order to increase demand.
• E) None of these choices are correct.

Recognize the role of autonomous spending in shifting the aggregate demand and expenditure curves.

Discern the implications of changes in the price level for exports, imports, and net exports.

Understand the concept of equilibrium in the context of aggregate expenditure and real GDP.

Grasp the nature of investment, including its autonomy from the level of saving.

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Definitions:

Abuse Alcohol

The harmful use of alcohol that leads to health problems, social issues, and psychological disorders.

Prohibition

A period in history, particularly in the United States (1920-1933), when the production, importation, transportation, and sale of alcohol were banned.

Civil War

An internal conflict within a country between differing factions, states, or governments, often characterized by intense military engagements and significant casualties.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and resulting in significant geopolitical changes.