In General,it Costs ________ Times More to Replace a Customer

question 59

Multiple Choice

In general,it costs ________ times more to replace a customer than it costs to keep a customer.

• A)two
• B)three
• C)four
• D)five
• E)six

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Definitions:

Price Level

The average of the current prices of goods and services in an economy, which can influence purchasing power and inflation.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

Multiple Counting

The erroneous practice of counting the same item more than once when calculating economic data, such as in measuring GDP.

Intermediate Goods

Goods used in the production process to create a final product, such as raw materials, components, or subassemblies, which are not counted in a country’s GDP to avoid double counting.