Change in an Industry Is the Result of

question 53

Multiple Choice

Change in an industry is the result of

• A)the forces of technology, consumer preferences, and economic growth.
• B)both external forces and the incumbents' competitive strategies.
• C)the effect of the "5 forces" model of competition.
• D)economic and psychological factors.

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Definitions:

Multiplier

In economics, the multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period of time, marked by phases of expansion and contraction.

Government Spending

Expenditures by government agencies on goods and services that are intended to improve the nation's economy and the welfare of its citizens.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific period of time.