When Small Businesses Compete with Large Firms, a Main Disadvantage

question 61

Multiple Choice

When small businesses compete with large firms, a main disadvantage is

• A)analyzing unusual or unique competitive factors.
• B)operating at a cost level.
• C)lacking flexibility.
• D)reaching break-even point quicker.

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Definitions:

Equation of Exchange

A monetary theory equation that states the money supply multiplied by the velocity of money equals the price level times the quantity of goods and services sold (MV = PQ).

Interest Rate

The part of a loan that incurs interest fees for the borrower, customarily indicated as an annual percentage of the unpaid loan.

Discretionary Policies

Economic strategies, involving government spending and taxation, that are implemented at the discretion of the government to manage economic fluctuations.

Monetarist Economists

Economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods.