Private Ownership and Competitive Markets Are Important for Economic Growth

question 123

Multiple Choice

Private ownership and competitive markets are important for economic growth because they provide individuals with a strong incentive to

• A) care for resources and use them beneficially.
• B) innovate and introduce new products that are highly valued relative to their cost.
• C) produce goods efficiently.
• D) all of the above are correct.

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Definitions:

Point-of-Purchase Stimulus

Marketing materials or displays placed at the site of the transaction to influence the consumer's purchase decision at the moment of buying.

Evoked Set

A group of relevant brands that a consumer recalls when making a purchase decision.

Exchange Theory

A social psychological perspective that views social relationships as transactions where individuals seek to maximize rewards and minimize costs.

Buying Behaviour

The decision-making process and actions of consumers regarding the search for, selection, purchase, use, and disposal of goods and services.