Which One of the Following Assumptions Is Made When Declaring

question 88

Multiple Choice

Which one of the following assumptions is made when declaring that the break-even probability of collection is lower for customers with repeat orders?

• A) The discount rate is fairly high.
• B) The cost of the item will continually decline.
• C) The sales price of the item will continually increase.
• D)Payment on the first order ensures payments on subsequent orders.

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Definitions:

Multiplier

An economic factor that quantifies the additional effect on income or output resulting from an injection of spending.

Deflationary Gap

A situation in economics where actual production is lower than the potential output level, often resulting in unemployment and unused productive capacity.

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand in an economy.

Full Employment GDP

The output level produced by the economy when all available resources are efficiently employed, representing potential GDP under full employment.