Exhibit 14A-3  Macro AD-AS Model in Exhibit 14A-3, the Intersection

question 29

Multiple Choice

Exhibit 14A-3  Macro AD-AS Model In Exhibit 14A-3, the intersection of AD with SRAS indicates:

• A) a short-run equilibrium.
• B) a long-run equilibrium.
• C) that the economy needs policies to reduce unemployment.
• D) that the economy is at full employment.

Know the difference between various organizational types based on their manufacturing processes and layouts.

Recognize the impact of capacity decisions on manufacturing and service organizations.

Understand the complexities of standardization on a global scale and the concept of mass customization.

Understand the interaction between nature and nurture in development.

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Definitions:

Net Income

Profit calculated as total revenues minus total expenses, interest, and taxes, representing how much the company earned or lost.

Initial Value Method

An accounting method where investments are recorded at their purchase cost without reflecting market value changes over time.

Retained Earnings

The portion of net income that is not distributed to shareholders but instead reinvested in the core business or used to pay off debt.

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends.