Expectations That a Consumer Forms Regarding What He or She

question 7

Multiple Choice

Expectations that a consumer forms regarding what he or she thinks should or ought to happen given the level of work that he or she has put into the experience are called _____ expectations.

• A) ideal
• B) relative
• C) equitable
• D) predictive
• E) normative

---

Definitions:

Expected Rate

An anticipated return on investment, often based on historical data or forecast models, that investors use to make decisions.

Interest Rate

The amount charged by a lender to a borrower for the use of assets as a percentage of the principal.

Profit

Profit denotes the financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Capital Goods

Long-lasting goods acquired or created by businesses to produce other goods or services, including machinery, buildings, and equipment.