The Burke-Litwin Model Differentiates Between Those Elements of the Model

question 36

Multiple Choice

The Burke-Litwin Model differentiates between those elements of the model that are seen as likely to be the source of ____ change and those that are more likely to be the source of change that is experienced as ____.

• A) Transformational; transactional
• B) Microscopic; macroscopic
• C) Positive; negative
• D) Mimetic; original

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Definitions:

Normal Good

A good for which demand increases when consumer income rises, and decreases when consumer income falls.

Income Effect

The change in an individual's or economy's income and how that change affects the quantity demanded of a good or service.

Substitution Effect

The change in consumption patterns due to a change in relative prices, holding the consumer's overall utility constant.

Income Effect

The Income Effect describes how changes in an individual's income affect their purchasing capacity and thus their demand for goods and services.