Part of the Entrepreneurial Process in a Competitive Market Economy

question 102

Multiple Choice

Part of the entrepreneurial process in a competitive market economy involves

• A) obtaining governmental control over the market so that a new product has some chance of being successful.
• B) knowing from the start the proper output and price to set for each new product.
• C) choosing the best structure, size, and scope of production for the firm to produce a new product.
• D) knowing in advance with certainty what products consumers will want to buy.

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Definitions:

Aggregate Demand

The total demand for all goods and services within a particular market or economy, including consumption, investment, government spending, and net exports.

Inflation

The velocity at which the total cost of products and services surges, reducing purchasing capacity.

Unemployment

The situation of being without a job, while actively looking for one and willing to work.

Short-Run Phillips

A concept that shows an inverse relationship between the rate of unemployment and the rate of inflation in an economy over a short period of time.