If the Wealth of Consumers Increases Substantially,this Would Shift

question 3

Multiple Choice

If the wealth of consumers increases substantially,this would shift

• A)the aggregate supply curve outward
• B)the aggregate demand curve outward
• C)the aggregate demand curve inward
• D)the aggregate supply curve inward
• E)both the aggregate demand and supply curves inward

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Definitions:

External Failure Costs

Costs incurred when a customer receives a defective product.

Appraisal Costs

Costs related to identifying defective units before they are shipped to customers.

Optimum Quality Level

The level of quality at which the total cost associated with quality management (including prevention, appraisal, and failure) is minimized.

Balanced Scorecard

A set of performance measures that provide a comprehensive view of the organization by recognizing the goals of shareholders, the satisfaction of customers and employees, and methods to improve the firms internal processes.