A Cooperative of Egg Producers Believes a Profitable Market for Eggs

question 138

Multiple Choice

A cooperative of egg producers believes a profitable market for eggs exists overseas where people are not as concerned about cholesterol. What will the cooperative most likely use if it decides to export?

• A)a commission merchant
• B)a drop shipper
• C)an export broker
• D)an export agent

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Definitions:

Marginal Propensity

The fraction of an additional unit of income that is spent on consumption rather than being saved.

Consumption Function

The relationship in the economy between consumption and income, other things constant.

Saving Function

The relationship between the level of saving and the level of income, typically showing that saving increases as income increases.

Consumption Function

An economic formula that expresses the relationship between total consumption and gross national income, indicating how much households are likely to spend.