Explanations for the High Precautionary Savings in China Includes All

question 173

Multiple Choice

Explanations for the high precautionary savings in China includes all of these except:

• A) China's limited social safety net provides most people with little protection against health problems and medical costs.
• B) lifetime employment and guaranteed state pensions.
• C) the many uncertainties associated with changing economic institution and society as a whole.
• D) higher prices for things such as housing and education.

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Definitions:

Unused Equipment

Equipment that is not currently in operation or being utilized in the production process.

Differential Cost

The difference in total cost that will result from selecting one alternative over another.

Differential Analysis

The area of accounting concerned with the effect of alternative courses of action on revenues and costs.

Unprofitable Segment

A division or business unit within a company that does not generate profits and may incur losses.