Demand for a Given Item Is Said to Be Dependent

question 55

Multiple Choice

Demand for a given item is said to be dependent if:

• A)it originates from the external customer.
• B)there is a deep bill of material.
• C)the finished products are mostly services (rather than goods).
• D)there is a clearly identifiable parent.
• E)the item has several children.

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Definitions:

Risk-loving

A preference or inclination for taking on risks where the potential for gains outweighs the potential losses, as opposed to risk-aversion.

Risk-averse

describes an individual or entity that prefers to avoid risk and opts for the option with the least uncertainty.

Risk Premium

The additional return expected by an investor for taking on a higher level of risk compared with a risk-free investment.

Utils

A hypothetical unit of measurement used in economics to quantify the amount of utility or satisfaction gained by consuming goods and services.