Concerned by Recent Negative Trends in Economic Indicators Such as the Consumer

question 86

Multiple Choice

Concerned by recent negative trends in economic indicators such as the consumer price index,gross domestic product,and inflation,the marketing manager of Kevin's Kayaks recommends that the company reduce its advertising spending.His recommendation is based on ________ data.

• A)Microeconomic
• B)Macroeconomic
• C)Government
• D)Numerological
• E)Incomplete

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Definitions:

Activity

Any action or task undertaken by individuals or groups, often resulting in production or consumption of goods or services.

External Costs

Costs of economic activities that affect third parties outside the transaction, which are not reflected in market prices.

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public expenditures.

Negative Externality

Occurs when a decision by an individual or firm results in unwanted negative effects on another party not involved in the decision.