A Company in Canada Is Building a Moveable Oil Exploration

question 41

Multiple Choice

A company in Canada is building a moveable oil exploration rig to the exact specifications provided by a South American oil company. The rig is able to move under its own power. Upon arrival, it will stay fixed in one location using a combination of a GPS system and gyroscopes until the owner wants to move it again. The construction of this moveable drilling platform exemplifies which of the following?

• A) derived demand
• B) customer-pull manufacturing environment
• C) customer-push manufacturing environment
• D) change in the economic environment

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Definitions:

Activity

Engagements or actions undertaken by individuals, businesses, or economies, often implying economic transactions or movements.

Private Property

A legal designation for the ownership of property by non-governmental legal entities, affording the owner exclusive rights to the use, disfranchisement, and transfer of the property.

Enforce Contracts

The process of legally ensuring that the terms of a contract are carried out as agreed, often involving judicial or regulatory intervention.

External Benefits

Advantages or positive effects generated by an economic activity that benefit individuals or entities not directly involved in the activity.