In a Consumer-Oriented Economy,what Can We Conclude About the Decision

question 2

Multiple Choice

In a consumer-oriented economy,what can we conclude about the decision to save in order to promote economic growth?

• A)It must be enforced by high levels of taxation.
• B)It means a sacrifice of current consumption in order to enhance future consumption.
• C)It cannot be expected to benefit future generations.
• D)It can be expected to cause widespread unemployment.

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Definitions:

Retail Price

The total price charged for a product sold to the end consumer, inclusive of all taxes and charges.

Five-firm Concentration Ratio

An indicator of market concentration, measuring the combined market share of the top five firms within an industry.

Market-clearing Quantity

is the quantity of goods or services at which supply equals demand, so there are no surpluses or shortages in the market.

Elasticity of Demand

A determination of demand elasticity in relation to the price changes of a product.