If the Cost of Your Gasoline Purchases Decrease from $150

question 87

Multiple Choice

If the cost of your gasoline purchases decrease from $150 per month to $80 over a period of one year due to lower prices and your income decreases from $1,600 per month to $1,500 per month,your nominal income has

• A)Increased,but your real income has decreased.
• B)Decreased,but your real income has increased.
• C)Increased,and your real income has increased.
• D)Increased,but your real income has remained the same.

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Definitions:

Differentiation Strategy

A business approach where a company seeks to be unique in its industry along some dimensions valued by customers.

Performance Management

Is the general set of activities carried out by the organization to change (improve) employee performance.

Cost Leadership Strategy

A cost leadership strategy is one that focuses on minimizing the costs as much as possible.

Defender Strategy

A business strategy focusing on defending existing market niches, maintaining stable growth, and protecting market share from competitors.