One Reason We Have Seen Continued Growth in Home-Based Businesses

question 143

Multiple Choice

One reason we have seen continued growth in home-based businesses is

• A) the location offers a more secure operational environment.
• B) affordable technology makes it easier to compete.
• C) people need something to do while they wait to return to work for a large corporation.
• D) it is less risky to start a home-based business than other types of entrepreneurial ventures.

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Definitions:

Equivalent Variation

A measure in economics that captures the change in wealth needed to maintain utility at a pre-change level after a price change.

Income

Money that an individual or business receives in exchange for providing labor, producing goods, or investing capital, over a certain period.

Utility Function

A mathematical representation that translates the satisfaction or happiness a consumer gains from consuming quantities of goods and services into a numerical value.

Consumer's Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.