Which of the Following Refers to the Price Charged for Products

question 114

Multiple Choice

Which of the following refers to the price charged for products sold to a subsidiary of a multinational enterprise by another subsidiary in another nation?

• A) Transfer pricing
• B) International dumping
• C) Price discrimination
• D) Full-cost pricing

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Definitions:

MPS

Marginal Propensity to Save, which measures the fraction of additional income that is saved rather than spent on consumption.

Saving

The act of setting aside a portion of current income for future use, either by holding it as cash or putting it into investment accounts.

Disposable Income

Financial allotment for households' saving and spending requirements after income tax subtractions.

MPC

Marginal Propensity to Consume refers to the fraction of any additional income that is used for consumption purposes.