Consumer Advocates Believe the Practice of Downsizing by Consumer Products

question 181

Multiple Choice

Consumer advocates believe the practice of downsizing by consumer products firms has resulted in:

• A)fewer products and less product variability offered due to the corporate restructuring taking place worldwide.
• B)lower product prices for consumers because of lower labour, raw material and packaging costs due to the recession and lower inflation in the United States.
• C)a subtle, yet deceptive practice of taking advantage of consumers' buying habits by offering less product content in the same or larger package while maintaining or increasing the price.
• D)a greener environment due to the reduction in the amount of packaging used for promotional purposes (e.g. eliminating of the glossy cardboard that promoted the musical artist and contained the CD and its plastic protective box), thereby reducing the amount of waste disposed in landfills.

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Definitions:

AGI

Adjusted Gross Income, which is gross income minus adjustments to income, serving as the basis for calculating taxable income.

Deductible Contribution

A contribution, typically to a retirement account, that can be subtracted from gross income to reduce taxable income.

Employer-sponsored Plans

Retirement or insurance plans offered to employees by their employer as a part of their benefits package.

Individual-based Plans

Retirement or savings plans that are established by individuals to save for retirement, distinct from employer-sponsored plans.