Which of the Following Is Most Likely a True Statement

question 17

Multiple Choice

Which of the following is most likely a true statement about supplying functional goods?

• A) Cost and quality are the main criteria when selecting suppliers.
• B) The risk of making forecasting errors is very high due to product variety.
• C) Demand cannot be reliably estimated so getting products to market is key.
• D) The greatest risk is missing the market with the wrong item at the wrong time.
• E) The opportunity cost of a stockout is very high, so lead times must be greatly reduced.

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Definitions:

Federal Funds Rate

The interest rate at which depository institutions lend reserve balances to other depository institutions overnight.

Price Stability

An economic condition in which prices remain largely stable, without rapid inflation or deflation.

Maximum Employment

A situation in which all available labor resources are being used in the most economically efficient way, one of the goals of economic policy.

Quantity Theory of Money

This economic theory posits that the general price level of goods and services is directly proportional to the amount of money in circulation.