Which of These Would Be an Example of an Objective

question 198

Multiple Choice

Which of these would be an example of an objective in Step 1 of the price-setting process?

• A) We need to estimate the demand for this new product.
• B) We can rely on our reputation to introduce this product.
• C) Experts are predicting a slowing global economy.
• D) We need to forget profits right now; just make sure we break even.
• E) We need to hire a professional accountant.

---

Definitions:

Money Supply

The aggregate financial resources within an economy at a given point in time, including cash, coins, and the balances maintained in checking and savings accounts.

Aggregate Demand

The aggregate need for all products and services across an economy at different pricing points, during a defined timeframe.

Nominal Variables

Economic variables measured in monetary terms without adjustment for inflation, reflecting their value in current prices.

Real Variables

Variables measured in physical units.