Which of the Following Statements About the North American Industry

question 229

Multiple Choice

Which of the following statements about the North American Industry Classification System (NAICS) is most accurate?

• A) After being used for more than 50 years, the NAICS was replaced by the Standard Industrial Classification (SIC) system.
• B) The NAICS permits comparability across countries but does not accurately measure new or emerging industries.
• C) One drawback to the NAICS is that its industry classifications are inconsistent with the International Standards Organization.
• D) The NAICS groups economic activity to permit studies of market share, demand for goods and services, import competition in domestic markets, and similar studies.
• E) The NAICS is a five-digit code that allows comparison of industries even when information is limited.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Price Taker

An entity in a market that has no control over the prices at which it buys or sells goods, typically because it is too small to influence market prices.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various price levels.

Total Revenue

The overall amount of money generated from sales of goods or services, calculated as quantity sold times price per unit.