The Home Depot Entered the Market as a Store for Professional

question 143

Multiple Choice

The Home Depot entered the market as a store for professional and amateur plumbers,electricians,and carpenters.Then it introduced its garden centers.Next came its home design center that provides help with all kinds of interior decorating problems.Now it is enlarging its garden centers and hiring knowledgeable gardeners to staff these centers.The addition of more amenities and greater assortment can be best explained by which of the following?

• A)the 80/20 rule of retailing
• B)the success of off- price retailers
• C)the wheel- of- retailing hypothesis
• D)the interconnectedness of the retail life cycle
• E)the trend toward disintermediation

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Definitions:

Board of Governors

refers to the leading body or group of individuals overseeing the operations and policy-making of an organization, such as a central bank.

Monetary Policy

The macroeconomic policy laid down by the central bank involving management of money supply and interest rate to control inflation, consumption, growth, and liquidity.

Rational Expectations

The hypothesis that individuals form forecasts of future events based on past and current information in a consistent and unbiased manner.

Discretionary Policy

Refers to economic strategies and actions, such as changes in tax rates or government spending, opted by the government to manage the economy.