Which Statement Is True About a Product Market

question 80

Multiple Choice

Which statement is true about a product market?

• A) The cost of labor does not affect the product market because it is an insignificant part of an organization's costs.
• B) Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price.
• C) Organizations in a product market are competing to serve the same customers.
• D) Product markets typically place a lower limit on the pay an organization will offer its employees.
• E) Organizations in a product market must increase the cost of labor every quarter.

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Definitions:

Printing Money

The process by which the central bank increases the money supply by physically creating more currency.

Deflation

A decrease in the general price level of goods and services, often indicating a contraction in the supply of money and credit in the economy.

Natural Resources

Raw materials supplied by nature that are used to produce goods and services.

Multilateral Assistance

Financial aid provided by multiple countries or international organizations to support economic development or humanitarian efforts in a recipient country.