_____ Refer to Incentives Designed to Stimulate the Purchase or Sale

question 64

Multiple Choice

_____ refer to incentives designed to stimulate the purchase or sale of a product,usually in the short term.

• A)Sales promotions
• B)Compensations
• C)Selling tools
• D)Public relations

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Definitions:

Economists

Experts or professionals who study, develop, and apply theories and concepts in economics to analyze how societies utilize scarce resources.

Monopoly

A market condition where a single firm has exclusive control over a product or service, eliminating competition.

Negative Externalities

Adverse effects suffered by a third party or the public as a result of an economic transaction or activity.

Principal-Agent Problem

At a firm, a conflict of interest that occurs when agents (workers or managers) pursue their own objectives to the detriment of the principals’ (stockholders’) goals. In public choice theory, a conflict of interest that arises when elected officials (who are the agents of the people) pursue policies that are in their own interests rather than policies that would be in the better interests of the public (the principals).