According to the Geographical Pricing Map a Above,if the Plant

question 334

Multiple Choice

According to the Geographical Pricing Map A above,if the plant in Denver charges $20 to ship its products to all of the identified cities in the U.S. ,it is most likely using which type of pricing strategy?

• A)FOB origin pricing
• B)multiple-zone pricing
• C)freight absorption pricing
• D)basing-point pricing
• E)single-zone pricing

---

Definitions:

Government Borrowing

The method by which a government finances its expenditure by issuing debt instruments, such as bonds.

Public Expenditures

Refers to the spending of government funds on goods, services, and infrastructure for the public benefit and economic stability.

Crowding Out

A situation in which increased public sector borrowing leads to a reduction in private sector spending, either because of higher interest rates or because available financial resources are used by the government.

Governmental Purchases

Expenditures made by the government for goods and services that are used to provide public services.