Consumer Advocates Believe the Practice of Downsizing by Consumer Products

question 161

Multiple Choice

Consumer advocates believe the practice of downsizing by consumer products firms has resulted in:

• A)lower product prices for consumers because of lower labour, raw material and packaging costs due to the recession and lower inflation in the United States.
• B)a greener environment due to the reduction in the amount of packaging used for promotional purposes (e.g.eliminating of the glossy cardboard that promoted the musical artist and contained the CD and its plastic protective box), thereby reducing the amount of waste disposed in landfills.
• C)fewer products and less product variability offered due to the corporate restructuring taking place worldwide.
• D)a subtle, yet deceptive practice of taking advantage of consumers' buying habits by offering less product content in the same or larger package while maintaining or increasing the price.

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Definitions:

Payment Plans

Agreements outlining how a borrower will pay back a loan or an installment purchase over a specified time period.

Amortized Mortgage

A loan where the principal is paid down over the life of the loan, typically through fixed monthly payments.

Nominal Interest Rate

The rate of interest before adjustments for inflation, reflecting the rate at which money can be borrowed or lent.

Monthly Payments

Regular payments made on a monthly basis towards settling a financial obligation, such as a loan or mortgage.