A Manufacturer of Sports Bicycles Uses Various Cycling Legends and Sports

question 7

Multiple Choice

A manufacturer of sports bicycles uses various cycling legends and sports celebrities as brand ambassadors to promote its product in China. Bicycles in China are used mainly by the working class for commuting, not sports, so the promotional campaign was a failure. During which step of the international communications process did the manufacturer most likely go wrong?

• A) information source
• B) message channel
• C) encoding
• D) decoding
• E) noise cancellation

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Definitions:

Inflation

The escalation rate of average prices for merchandise and services, causing a fall in the ability to purchase.

Aggregate Demand Curve

illustrates the total amount of goods and services that households, businesses, government, and foreign buyers collectively will desire at each possible price level.

Long Run Aggregate Supply

Represents the total output an economy can produce when using its resources in the most efficient way, without changing the price levels.

Expected Price Level

Expected price level refers to the anticipation of people regarding the general price level of goods and services in the economy in the future.