Financial Leakage Is Associated with the Growth of Big Business

question 46

Multiple Choice

Financial leakage is associated with the growth of big business and globalization where

• A) finances of the community are funnelled to the grassroots.
• B) communities do not profit from this growth of business.
• C) local profits are drained away to more distant places.
• D) local profits are leaked to the local members.
• E) global executives manage local businesses.

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Definitions:

Opportunity Cost

Opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen.

Consumer Surplus

The separation between the total amount consumers are equipped and willing to pay for a good or service and what is effectively paid.

Total Surplus

The sum of consumer and producer surplus, reflecting the total benefit to society from the production and consumption of goods and services.

Consumer Surplus

The split between the maximum total consumers are prepared to pay for a product or service and the actual payment.