A Product System in Which the Product Is Folded Back

question 27

Multiple Choice

A product system in which the product is folded back into the resource stream when the consumer is finished with it is a(n) _________.

• A) open-loop system
• B) closed-loop system
• C) linear system
• D) one-way system
• E) cradle-to-grave system

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Definitions:

Utility Function

A mathematical representation used in economics to model the preference or satisfaction a consumer derives from consuming goods and services.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another.

Income Effect

The change in an individual's or market's consumption resulting from a change in real income.

Inferior Good

A type of good for which demand decreases as the income of consumers increases.