Changes in Variables, Such as Income, Cost of Living, Interest

question 17

Multiple Choice

Changes in variables, such as income, cost of living, interest rates, and savings and borrowing patterns most likely reflect changes in the ________ environment of a company.

• A) economic
• B) natural
• C) demographic
• D) political
• E) cultural

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Definitions:

Surplus

The situation in which the quantity supplied of a good or service exceeds the quantity demanded at the current price.

Bags Of Pretzels

Not a standard economic key term, often used as an example in contextual scenarios about goods.

Market

A market is any arrangement that allows buyers and sellers to exchange goods, services, and information. It determines the price and allocation of resources through the interactions of supply and demand.

Normal Good

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