Which of the Following Statements Is True of Globalization

question 49

Multiple Choice

Which of the following statements is true of globalization?

• A)​It expands economic freedom and increases the living standards of people.
• B)It increases prices and decreases product and service quality. 
• C)It has curbed the growth of middle class in developing countries.
• D)​It leads to monopoly of domestic producers.

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Definitions:

Less Elastic

Refers to a situation where a change in price leads to a relatively smaller change in the quantity demanded or supplied.

Less Elastic

Describes demand that is relatively insensitive to price changes, indicating consumers do not reduce purchase quantities significantly when prices increase.

Price Sensitive

Referring to the degree to which the demand for a product changes with a change in its price.

Cost Of Overpricing

The negative impacts, such as reduced sales and loss of market share, that can occur when a product is priced too high.