Policies Are Intended to Be

question 7

Multiple Choice

Policies are intended to be:

• A) overall guides, therefore the language used in policy statements is broad
• B) precise regulations governing behavior
• C) expressions of the organization's long-range objectives
• D) None of these are correct

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Definitions:

Substitution Effect

A concept in economics describing the change in consumption resulting from a change in the price of one good relative to the price of other goods.

Giffen Goods

A type of good for which demand increases as the price increases, and falls when the price decreases, violating the basic law of demand in economics.

Law of Demand

A fundamental principle stating that all else being equal, as the price of a good increases, the quantity demanded of that good decreases, and vice versa.

Marginal Utilities

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.