Subway Introduces a New Line of Vegetarian Sandwiches in 20

question 166

Multiple Choice

Subway introduces a new line of vegetarian sandwiches in 20 locations in Southern Ontario for a six-month period. If the product and promotional efforts behind it are successful, the company may launch the sandwiches nationwide. What type of research is being conducted to determine potential success?

• A) test-marketing
• B) exploratory research
• C) random sampling
• D) focus groups

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Definitions:

Federal Spending

Expenditures by the federal government on various programs, infrastructure, and services, financed by taxes and other revenues.

Payroll Tax

Obligations enforced on either the workforce or the employers, generally estimated as a share of the compensation employers offer to their staff.

Proportional Taxes

Taxes that are imposed at a constant rate regardless of the income level of the taxpayer.

Regressive Effect

A situation where a tax or fiscal policy disproportionately affects lower-income individuals, making them pay a higher percentage of their income than wealthier individuals.