The Price of DVD Players Increases Dramatically, Causing a 1

question 92

Multiple Choice

The price of DVD players increases dramatically, causing a 1 percent increase in the CPI. The price increase will most likely cause the GDP deflator to increase by

• A)more than 1 percent.
• B)less than 1 percent.
• C)1 percent.
• D)None of the above is correct; this particular price increase will not affect the GDP deflator.

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Definitions:

Critical Mass

The minimum amount of something required to start or maintain a venture, often referring to the necessary volume of customers, resources, or support to make a project viable.

Revenues

The total income generated by a company from its business activities, before any expenses are subtracted.

Timmons Model

A model of entrepreneurship that emphasizes the importance of the opportunity, team, and resources, and suggests that these elements are critical to the success of any venture.

Driving Forces

Factors or influences that contribute to the momentum and direction of change in an organization or system.