Quality of Design Measures

question 54

Multiple Choice

Quality of design measures

• A) how closely the characteristics of products or services match the needs and wants of customers.
• B) how closely the characteristics of products or services match the needs and wants of employees.
• C) how closely the characteristics of products or services match the needs and wants of the Board of Directors.
• D) how closely the characteristics of products or services match the needs and wants of competitors.
• E) how closely the characteristics of products or services match the needs and wants of union representatives.

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Definitions:

Other-Things-Constant Assumption

The assumption, when focusing on the relation among key economic variables, that other variables remain unchanged; in Latin, ceteris paribus.

Rational Self-Interest

Each individual tries to maximize the expected benefit achieved with a given cost or to minimize the expected cost of achieving a given benefit.

Economic Actors

Individuals, companies, and organizations involved in the production, distribution, and consumption of goods and services.

Economic Model

A simplified representation of economic processes, used to understand and predict economic behaviors by focusing on key variables and their relationships.