Quality Is

question 69

Multiple Choice

Quality is:

• A) meeting or exceeding customer expectations in the goods and/or services offered.
• B) only a major factor in the production of luxury goods, such as BMW cars.
• C) an assured way to gain competitive advantage.
• D) a viable trade-off with product cost in gaining a competitive advantage.

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Definitions:

MPS

Marginal Propensity to Save, which measures the proportion of additional income that households save rather than spend on consumption.

APS

The Average Propensity to Save, which is the proportion of income that households save rather than consume.

MPC

The marginal propensity to consume, which is the portion of additional income that a consumer spends on goods and services.

Consumption

The total value of goods and services consumed by households and businesses.