Which One of the Following Combinations of Firms Would Benefit

question 85

Multiple Choice

Which one of the following combinations of firms would benefit the most through the use of complementary resources?

• A)A ski resort and a travel trailer sales outlet
• B)A golf resort and a ski resort
• C)A hotel and a home improvement center
• D)A swimming pool distributor and a kitchen designer
• E)A fast food restaurant and a dry cleaner

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Definitions:

Economic Boom

A period of significant economic growth, expansion, and prosperity.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Purchasing Power Parity Theory

An economic theory that states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

Market Basket

A fixed set of goods and services used to monitor changes in price levels and purchasing power over time, often used in calculating inflation.