Clustering of Firms in Local Industrial Districts in Some Countries

question 1

Multiple Choice

Clustering of firms in local industrial districts in some countries has been prompted mainly by:

• A) big firms contracting out production to small firms
• B) small firms being more responsive to shifts in demand
• C) a shift from mass to customized production
• D) a and c above

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:

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials, labor, and manufacturing overhead.

Balance Sheet

The balance sheet is a financial statement that shows a company’s assets, liabilities, and shareholder equity at a specific point in time.

Spreadsheet

A software application that allows users to organize, analyze, and store data in tabular form.

Job-Order Costing

An accounting method used to assign costs to specific jobs or orders, tracking expenses in relation to each job's production costs.