Which of the Following Is NOT a Good Example of a Substitute

question 106

Multiple Choice

Which of the following is NOT a good example of a substitute product that triggers stronger competitive pressures?

• A) A salad as a substitute for French fries
• B) Wireless phones as a substitute for wired telephones
• C) Coca-Cola as a substitute for Pepsi
• D) Snowboards as a substitute for snow skis
• E) Video-on-demand services from a cable TV company as a substitute for going to the movies

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Definitions:

Exports

The sale of goods and services produced in one country to residents of other countries.

Domestic Saving

The part of a nation's income that is not spent on consumption or government expenditure, and is instead saved or invested domestically.

Domestic Investment

Investments within a country's borders by both the public and private sectors, contributing to the nation's overall economic growth.

Open Economies

refers to countries or markets that engage in free trade with other countries, allowing goods, services, and capital to move across borders with minimal restrictions.