A Product That Represents a Novel Idea Requiring Little Financial

question 28

Multiple Choice

A product that represents a novel idea requiring little financial investment would be displayed in the ________ of the entrepreneurial strategy matrix.

• A)upper-left quadrant
• B)lower-left quadrant
• C)upper-right quadrant
• D)lower-right quadrant
• E)center

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Definitions:

Substitution Effect

Changes in what consumers purchase, brought about by alterations in the relative costs of goods, persuading consumers to opt for alternatives over their usual choices.

Income Effect

The correlation between income changes in an economy or for individuals and their effect on the quantity of goods and services demanded.

Opportunity Cost

The value of the next best alternative that is foregone when a decision is made to choose one option over another.

Leisure Time

Free time in which an individual is not working, is not engaged in compulsory activities, and can choose activities for relaxation, enjoyment, or other personal development.