The Two Processes Through Which Firms Create Value Are

question 25

Multiple Choice

The two processes through which firms create value are:

• A)Restructuring existing businesses and creating new businesses through entrepreneurship
• B)Increases prices and reducing costs
• C)Production and commerce
• D)Production to create real value and marketing to create perceived value

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Definitions:

Per Capita Real GDP

This is a measure of the average economic output per person, adjusted for inflation, in a specific area.

GDP Deflator

A measure for evaluating the price index of all fresh, domestically produced, final goods and services in an economy.

Population

The total number of people inhabiting a particular territory or geographic area.

GDP Deflator

An economic metric that converts the money-value measure of GDP to a measure of real GDP by accounting for inflation or deflation.