Which of the Following Observations About Nonstore Retailing Is True

question 83

Multiple Choice

Which of the following observations about nonstore retailing is true?

• A) There is no way a catalog retailer can reduce the disadvantage associated with the fact that consumers can't experience the product before they buy it.
• B) Net sales are higher for products sold through TV home shopping than for products sold through vending machines.
• C) Net sales are higher for products sold through electronic exchanges as compared to catalogs and direct mail.
• D) In the business-to-consumer market, electronic exchange is the fastest growing nonstore method of retailing.

Calculate the future value of investments with compound interest.

Determine the necessary initial investment to achieve a specific future value.

Understand and calculate the periodic interest rate based on annual rates and compounding frequency.

Calculate the present value of a series of future payments or a future lump sum.

---

Definitions:

Real Income

The income of an individual or group after adjusting for inflation, reflecting the actual purchasing power of the income.

Total Utility

The total satisfaction a consumer receives from consuming a particular quantity of a good or service.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at specific prices.

Purchase More

The action of buying an increased quantity of goods or services than previously acquired.