Products Can Be Differentiated

question 165

Multiple Choice

Products can be differentiated

• A) if the buyers are homogeneous and their number increases.
• B) by location and by brand name.
• C) only by brand name.
• D) none of the above.

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Definitions:

Demand-Management Policies

Strategies used by the government to influence the amount of aggregate demand in the economy, often through fiscal and monetary policies.

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without additional intervention by the government or policymakers, such as progressive taxes and unemployment benefits.

Real GDP

Stands for Real Gross Domestic Product, which measures the value of all final goods and services produced within a country in a given period, adjusted for inflation.

Keynesian Theory

An economic theory stating that government intervention through fiscal policy is necessary to manage the cyclical nature of economies and adjust to demand shocks.