Which of the Following Statements Is Correct

question 102

Multiple Choice

Which of the following statements is correct?

• A)Built-in stability only partially offsets fluctuations in economic activity.
• B)Built-in stability works in halting inflation, but it cannot alleviate unemployment.
• C)Built-in stability can be relied on to eliminate completely any fluctuation in economic activity.
• D)Built-in stability overcorrects for fluctuations in economic activity; for example, it may change a small expansion into a recession.

Recognize the importance and effects of international agreements on domestic and international business operations.

Evaluate the ethical and social considerations that influence legal decisions and laws.

Understand the processes involved in changing laws and the importance of legal compliance.

Distinguish between different types of law (e.g., common law, statutory law, administrative law) and their sources.

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Definitions:

Market-Creating Innovations

Products or ideas that meet the needs of a group of potential consumers whose needs have not been met before.

Management's Decision

Decisions made by an organization's management, guiding the direction, operations, and administrative actions of the company.

Customer Base

The group of consumers who repeatedly purchase the goods or services of a business, fundamentally driving its revenue.

Market-Creating Innovation

Innovations that introduce new products or services, creating new demand and potentially new markets.