Which of the Following Is the Correct Ordering If We

question 145

Multiple Choice

Which of the following is the correct ordering if we want to rank the four spending shares of U.S. GDP in 2015 in descending (from highest to lowest) order?

• A)Consumption, government purchases, investment, net exports
• B)Consumption, investment, government purchases, net exports
• C)Government purchases, consumption, investment, net exports
• D)Consumption, government purchases, net exports, investment
• E)Consumption, investment, net exports, government purchases

---

Definitions:

Prospect Theory

A behavioral economic theory that describes how people decide between probabilistic alternatives that involve risk.

Problem Recognition

The initial step in the consumer decision process, where a consumer identifies a need or problem that requires a solution or purchase.

Evoked Set

A group of relevant brands or products that a consumer considers when making a purchasing decision.

Internal Search

The process by which individuals recall information from memory to make a decision, often used in the context of consumer behavior.