The Situation in Which Fluctuations in Orders Increase as They

question 69

Multiple Choice

The situation in which fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers is known as

• A)market fluctuations.
• B)the whiplash effect.
• C)the bullwhip effect.
• D)the butterfly effect.

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Definitions:

Economic Competition

A condition in markets where businesses or sellers independently strive for consumer's dollars by offering the best possible terms, leading to efficient resource allocation.

Command Systems

Economic systems where the government controls key sectors of the economy, determining what goods are produced, their prices, and distribution.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace, where individuals' pursuit of self-interest leads to the benefit of society at large.