An Increase in the Amount of Household Wealth in an Economy

question 138

Multiple Choice

An increase in the amount of household wealth in an economy would ________ the average standard of living and would ________ the spending power experienced by the typical person.

• A) raise; have little effect on
• B) raise; improve
• C) raise; reduce
• D) have no effect on; improve
• E) lower; reduce

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Definitions:

The Reactor

A strategy used by organizations that only respond to environmental changes or pressures rather than anticipating them or actively seeking to influence them.

The Prospector

A type of strategic business model focused on innovation, exploring new markets, and seeking out new opportunities, often characterized by flexibility and a willingness to take risks.

Defender Strategy

a business strategy focused on maintaining current markets and customers, often by focusing on product improvement and maintaining a stable growth rate.

Entrepreneurial Employees

Refers to employees within an organization who possess an entrepreneurial mindset, often driving innovation, taking initiative, and contributing to the company's growth like internal entrepreneurs.