What Is Meant by the Term Induced Consumption

question 59

Multiple Choice

What is meant by the term induced consumption?

• A)It is the portion of consumer spending that is unrelated to income levels.
• B)It is the necessary amount of spending that consumers must undertake.
• C)It is the portion of income which is not saved.
• D)It is the portion of consumer spending which is dependent on the level of income.

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Definitions:

FOB Freight-Allowed

A shipping term indicating that the seller pays for the transportation of goods to a specific location, but the buyer assumes the risk of loss once shipped.

Basing-Point Pricing

A pricing strategy where the price of goods includes transportation costs from a specific location, regardless of the actual shipment origin.

Deceptive Pricing

Pricing practices intended to mislead or trick consumers about the actual cost of a product or service.

Federal Trade Commission

A United States government agency aimed at promoting consumer protection and eliminating harmful anti-competitive business practices.