While Expanded Federal Programs Are Often Popular for Americans, This

question 60

Multiple Choice

While expanded federal programs are often popular for Americans, this much larger bureaucracy suffers during a downturn in economic growth, such as was experienced in the 1970s. Why does an economic downturn create such challenges?

• A) There are fewer citizens for the bureaucracy to serve.
• B) Economic downturns often create federal budget deficits that make it very difficult to continue supporting a large bureaucracy.
• C) State governments begin to take away the federal government's role in providing social benefits.
• D) Downturns in the economy always create international tensions that require a stronger military presence, which in turn drains off available resources.
• E) As the U.S. Constitution requires a balanced budget, the federal government must eliminate agencies when income decreases.

Recognize the importance of ethics in targeting specific market segments.

Identify the challenges and criteria for effective market segmentation and targeting.

Understand how demographic variables (age, gender, income) are used in market segmentation.

Appreciate the significance of adapting marketing strategies to meet the needs of specific market segments.

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Definitions:

Economic Model

A simplified representation of an economic process or market designed to predict real-world behaviors and outcomes.

Production Possibility Frontier

A curve depicting all the possible combinations of two goods that can be produced within a given economy when resources are fully and efficiently utilized.

Productive Capacity

The maximum output a firm or economy can produce with the current level of resources and technology, indicating potential growth limits.

Efficiently

The ability to achieve a goal or fulfill a function with the least waste of time and effort; maximizing productivity with minimum wasted effort or expense.