The Market System Is Said to Be Characterized by "Consumer

question 223

Multiple Choice

The market system is said to be characterized by "consumer sovereignty." This is because

• A) a sovereign government determines which consumer goods will be produced.
• B) the prices of consumer goods are regulated by a sovereign government.
• C) firms must match their production decisions to the consumers' choices.
• D) consumer goods are considered to be more important than capital goods.

Assess the influence of cultural differences on behavioral requirements for goal accomplishment.

Understand the role of intuition in managerial decision-making.

Recognize the impact of diversity and corporate social responsibility on organizational practices.

Understand the basic principles of the market system and its advantages such as efficiency and economic freedom.

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Definitions:

Financial Capital

Refers to the funds provided by lenders (and investors) to businesses to purchase real capital equipment for producing goods/services.

Raw Materials

Basic materials that are processed or refined to create goods and products in various industries.

Soviet Union

A former federation of Communist republics that was established in 1922 and dissolved in 1991, consisting of Russia and several other countries in Eurasia.

Supply

The aggregate quantity of a product or service that can be bought at any specific price point within a particular market.