The Two Dimensions the BCG Approach Uses to Evaluate and Manage

question 18

Multiple Choice

The two dimensions the BCG approach uses to evaluate and manage SBUs are ________.

• A) market growth rate and relative market share
• B) market growth rate and market penetration
• C) market growth rate and market development
• D) relative market share and product development
• E) relative market share and market penetration

---

Definitions:

Government Transfers

Payments by the government to individuals for which no good or service is provided in return.

Deadweight Loss

Deadweight loss is the decrease in total surplus (both consumer and producer surplus) that occurs when a market is not in perfect competition, typically due to inefficiencies like taxes, subsidies, or monopolies.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Poverty Line

A threshold set by governments to define the minimum income level necessary to afford basic necessities, delineating who is considered to be in poverty.