Which Statement Below Reflects Current Consumer Attitudes Towards Businesses

question 78

Multiple Choice

Which statement below reflects current consumer attitudes towards businesses?

• A) Most consumers believe that as a general rule, businesses follow good practices. It is the few that have been caught that generate the most bad publicity.
• B) Most consumers believe corporate scandals, accounting fraud, and CEO greed are on the decline.
• C) Consumers are leery of big businesses, suspicious of business motives, and are unsure if any company can be trusted.
• D) Consumers believe big businesses cannot be trusted, but small businesses are normally honest and reputable.

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Definitions:

Creative Destruction

A concept in economics introduced by Joseph Schumpeter, describing the process by which innovation renders existing products or services obsolete, leading to economic growth.

Pure Competition

Characterizes a market situation where many sellers offer identical products, leading to a scenario where no single buyer or seller can influence the market price.

Consumer Surpluses

The variation between what buyers are interested in paying for a merchandise or service and the real cost they incur.

Producer Surpluses

The difference between the amount that producers are willing and able to sell a good for and the actual amount received by them after selling it.