Arthur Sells $100 Worth of Cotton to Bob

question 94

Multiple Choice

Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells
The dresses for $1,200 to kids attending the prom. The total contribution to GDP of this series of
Transactions is

• A) $1,200.
• B) $500.
• C) $2,300.
• D) $1,100.

Describe the role and characteristics of transnational corporations in the global economy.

Analyze the problematic terminology associated with "development" and its implications.

Understand the global poverty situation and the factors contributing to it.

Define and distinguish between absolute and relative poverty.

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Definitions:

Raise Profits

Strategies or actions taken by businesses to increase their net earnings or margin.

Inverse Demand Curve

A graph illustrating the relationship between price and quantity demanded, showing price on the Y-axis and quantity on the X-axis, essentially reversing the axes of a standard demand curve.

Marginal Costs

The increase in the full cost incurred by generating an additional unit of a product or service.

Perfect Price Discrimination

A pricing strategy where a seller charges each buyer their maximum willingness to pay, capturing the entire consumer surplus.