Which of the Following Statements About Planned Obsolescence Is True

question 63

Multiple Choice

Which of the following statements about planned obsolescence is true?

• A) Environmentalists support planned obsolescence.
• B) A company that is interested in producing a quality product would never engage in planned obsolescence.
• C) Style modification creates planned obsolescence.
• D) Planned obsolescence is not an ethical issue.
• E) All of the above statements about planned obsolescence are true.

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Definitions:

Time Lags

The delays between the initiation and the effect of an economic policy or other financial actions, impacting their effectiveness.

Passive Approach

An investment strategy that minimizes buying and selling actions, favoring long-term holding and typically indexed investments.

Policy Lags

The delay between the time a policy is enacted and the time it has an impact on the economy.

Discretionary Policy

Discretionary policy involves government and central banking measures that are actively implemented to influence economic conditions, such as adjusting taxes or changing interest rates.