Xavier and Yvette Are Discussing Starting a Business That Will

question 130

Multiple Choice

Xavier and Yvette are discussing starting a business that will take little start-up capital but,nonetheless,meets the needs of customers.They have reviewed a variety of economic and business publications and found one business area that seems to fit their capital requirements.Businesses in this area employ 86 percent of the nation's workforce.They now just need to determine which specific type of business in this area they will open.What type of business will they open?

• A) They will open a service business.
• B) They will open a manufacturing business because these businesses have large workforces.
• C) They will open a wholesale business supplying goods to retailers.
• D) They will open a government business.

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Definitions:

Fiscal Policy

A government's strategy for managing its budget, especially through taxation and spending decisions, to influence the economy.

Aggregate Demand

The entire market demand for goods and services within an economic environment, determined at an established price level over a fixed duration.

Stock Prices

The market price at which shares of a public company's stock are bought and sold.

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.