For Purposes of Annual Budgeting,it Is Better to

question 30

Multiple Choice

For purposes of annual budgeting,it is better to

• A)express goals very broadly to allow for flexibility.
• B)ignore goals altogether and focus instead on savings.
• C)express income goals concretely and expense goals broadly;this usually assures adequate savings.
• D)express all goals concretely,which then reduces all goals to yearly consumption and savings targets.

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Definitions:

Direct Price Discrimination

The practice of charging different prices to different consumers for the same product or service, based on their willingness to pay.

Arbitrage

The simultaneous buying and selling of assets in different markets to exploit price differences for profit.

Elasticity of Demand

A gauge for the responsiveness of how much a product is wanted relative to fluctuations in its price.

Inelastic Demand

A market situation where the demand for a product does not significantly change with a change in price.