Restrictions That Limit Sugar Imports, Subsidies for the Construction of Sports

question 92

Multiple Choice

Restrictions that limit sugar imports, subsidies for the construction of sports stadiums, and federal spending on programs like the construction of an indoor rain forest in Iowa all provide examples of government programs

• A) based on careful analysis of benefits relative to cost.
• B) designed to redistribute income from the rich to the poor.
• C) that reflect the political attractiveness of special-interest issues.
• D) that promote the general welfare.

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Definitions:

Demand-oriented

Pricing strategy or manufacturing approach that is guided by the level of demand from consumers or market conditions.

Price Lining

Setting the price of a line of products at a number of different specific pricing points.

Target Pricing

Consists of (1) estimating the price that ultimate consumers would be willing to pay for a product, (2) working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers, and then (3) deliberately adjusting the composition and features of the product to achieve the target price to consumers.

Cost-oriented

A pricing strategy where the price of a product or service is determined based on its production cost plus a markup.