A _____ is a good offered either free or at low cost as an incentive to buy a product ?
Correct answer: D. premium
- A. patronage reward
- B. spiff
- C. price pack
- D. premium
Explanation
A premium is a free or low-cost item offered to encourage the purchase of another product. A price pack is a reduced-price combination of products, not a separate incentive item.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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