Erin Developed a New Type of Exercise Equipment She Calls

question 157

Multiple Choice

Erin developed a new type of exercise equipment she calls the Tush N' Tone. After unsuccessfully searching for potential investors, she arranged a personal loan and borrowed additional money from her parents. Her willingness to continue believing in her idea and to remain enthusiastic shows that Erin is:

• A) characteristically self-nurturing.
• B) better suited to managing a nonprofit organization.
• C) unaware of the risks she was taking.
• D) not a true entrepreneur.

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Definitions:

Investment Spending

The expenditure on capital goods including buildings, machinery, and equipment, which are used to produce goods and services in the future.

Aggregate Supply Curve

A graph that shows the relationship between the overall price level in the economy and the total output (GDP) that firms produce and sell, at all possible price levels.

Trade Restrictions

Measures imposed by governments to regulate international trade, including tariffs, quotas, and embargoes.

Natural Resources

The inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits.