An Increase in Purchasing Power Is a Usually a Result

question 31

Multiple Choice

An increase in purchasing power is a usually a result of an increase in which of the following?

• A)gross income
• B)social class
• C)disposable income
• D)cost of living

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Definitions:

Market Price

The present cost at which a product or service is available for purchase or sale in a specific marketplace.

Firm

An organization engaged in commercial, industrial, or professional activities, either for-profit or not-for-profit.

Profit-Maximizing Level

The point at which a business achieves the highest profit, with costs minimized and revenue maximized.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.