BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The cyclical relationship between the savings and investment sectors of the economy
|
|
|
The dependence of workers on wages
|
|
|
The reliance that exists between all participants in the economy on each other
|
|
|
Solving unlimited needs and wants with limited resources
|
Detailed explanation-1: -Economic interdependence is the mutual dependence of the participants in an economic system who trade in order to obtain the products they cannot produce efficiently for themselves.
Detailed explanation-2: -Interdependence means that the firms in the market must take into account the likely reactions of their rivals to any change in price, output or forms of non-price competition. It is a key aspect of business competition and behaviour in an oligopoly and can be modelled by the use of game theory.
Detailed explanation-3: -plural interdependences or interdependencies. : the state of being dependent upon one another : mutual dependence. interdependence of the two nations’ economies. … a form of symbiosis, of close mutual interdependence of two species of organisms.
Detailed explanation-4: -Economic interdependence is a system by which many companies are economically dependent upon each other. On a macroeconomic level, this can involve many countries being economically dependent upon each other as well.
Detailed explanation-5: -The size of an economy is typically measured by the total production of goods and services in the economy, which is called gross domestic product (GDP). The different sectors within the economy are linked together. This interdependence means that a change in one sector can affect the rest.