Economies That Arise from Performing a Value Creation Activity in the Optimal

question 76

Multiple Choice

Economies that arise from performing a value creation activity in the optimal place for that activity are referred to as

• A) factor economies.
• B) production economies.
• C) location economies.
• D) value creation economies.

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Definitions:

Transfer Payments

Financial payments made by the government to individuals without any expectation of goods or services being returned, such as welfare benefits.

Budget Deficit

The situation when a government's expenditures exceed its revenues within a specific budget period, leading to borrowing or use of saved reserves.

Interest Rate

The slice of a loan imposed as interest upon the borrower, usually articulated as an annual percentage of the loan still to be repaid.

Federal Income Tax

A tax imposed by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.