Multiple Choice
When a company decides to distribute its products directly to the ultimate consumer, which type of distribution channel is it using?
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0. Basic Principles of Economics
Introduction to Economics
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Taking on an economic risk in order to innovate is known as:
A
arbitrage
B
entrepreneurship
C
specialization
D
consumption
Verified step by step guidance1
Step 1: Understand the key terms given in the problem. 'Arbitrage' refers to taking advantage of price differences in different markets to make a profit without risk.
Step 2: Recognize that 'specialization' means focusing on a narrow range of tasks or products to increase efficiency.
Step 3: Know that 'consumption' is the use of goods and services by consumers.
Step 4: Identify that 'entrepreneurship' involves taking on economic risks to innovate, create new products or services, and start businesses.
Step 5: Conclude that the term describing taking on economic risk to innovate is 'entrepreneurship'.
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