Verve IncSells Some of Its Products Like Cellphone Covers,sling Bags,and Wallets,by

question 44

Multiple Choice

Verve Inc.sells some of its products like cellphone covers,sling bags,and wallets,by storing,displaying,and selling them in gift shops,supermarkets,and drug stores.This implies that Verve is a _____.

• A)limited-function merchant wholesaler
• B)merchant wholesaler
• C)rack jobber
• D)drop shipper

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Definitions:

Export Subsidy

An export subsidy is a government policy to encourage export of goods and discourage sale within the domestic market, by providing financial assistance or tax relief.

Domestic Price

The price of a good or service within a country; this can be influenced by tariffs, taxes, and supply and demand.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariff barriers.

Competition

The rivalry among businesses to attract customers, which can lead to improvements in products, services, and prices.