As Market Development Occurs, Which of the Following Is False

question 45

Multiple Choice

As market development occurs, which of the following is false about marketing practices:

• A) Aggregate supply capabilities of companies exceed demand
• B) Product lines and varieties increase
• C) Pricing becomes less important as a competitive tool
• D) Distribution becomes more complex and specialized
• E) The marketing concept of tailoring output to customer needs becomes increasingly important

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Definitions:

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers, such as unemployment insurance and progressive taxation.

National Income

The total value of all goods and services produced by a country over a specific time period, adjusted for net income from foreign investments.

Federal Budget Deficit

The shortfall when a government's expenditures exceed its revenues within a specified fiscal period.

National Debt

The aggregate financial borrowing of a country's government, acquired through multiple methods.