When Halim Was Deciding on the Activities That Would Be

question 124

Multiple Choice

When Halim was deciding on the activities that would be involved in the business and establishing the goals and objectives, he was performing the _____ function of management.

• A)planning
• B)organizing
• C)leading
• D)controlling
• E)staffing

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Definitions:

Substitution Effect

The change in consumption patterns due to a change in the relative price of goods, leading consumers to substitute away from higher-priced goods toward lower-priced ones.

Income Effect

How an adjustment in income levels for individuals or the economy affects the demand for goods or services.

Engel Curve

A graphic representation showing how a consumer's demand for a good varies with income, keeping other factors constant.

Strictly Convex Preferences

Preferences where consumers always prefer mixtures of goods to extremes, demonstrating a consistent desire for variety.