In the 1990s,Philips Electronics Developed a New Consumer Electronics Product

question 21

Multiple Choice

In the 1990s,Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player.DCC allowed users to record and playback in a new digital format; DCC was also designed to play the older,analog cassette tapes that many people own.This latter feature reflects which of the following characteristics of innovations?

• A) relative advantage
• B) communicability
• C) compatibility
• D) complexity
• E) divisibility

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Definitions:

Credit Expansion

refers to the increase in the availability of loans or credit in an economy, often leading to increased investment and consumption.

Malinvestment

The allocation of resources in a manner where the return does not justify the initial investment, often due to poor planning or understanding of the market.

Hair Dryers

Electrical devices used to dry and style hair by blowing hot air over it.

Quantity Supplied

The amount of a certain good or service that producers are willing and able to sell at a given price during a specific time period.