In the Area of "Change the Product Mix," Corporate Response

question 102

Multiple Choice

In the area of "change the product mix," corporate response to the recession could be to push relatively _________________ product lines while deemphasizing _______________ lines.

• A) expensive, inexpensive
• B) imported, exported
• C) smaller, larger
• D) inexpensive, expensive
• E) high-tech, low-tech

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Definitions:

GDP

Gross Domestic Product, the total value of all goods and services produced within a country over a specified period.

MPC

The marginal propensity to consume, which measures the portion of additional income that an individual spends on consumption instead of saving.

Multiplier

In macroeconomics, a factor that quantifies the effect of an initial change in the economy (such as investment or spending) on the total level of economic activity.

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without additional government action.