Which term describes the ability to purchase goods and services?

Which term describes the ability to purchase goods and services?

• A. Purchasing power
• B. Group Influence
• C. Prosperity
• D. SBA

Answer: (A)

Purchasing power is the ability to purchase goods and services. It describes how much you can buy with a given amount of money. Inflation or rising prices reduce purchasing power because the same money buys less over time, while higher income or falling prices increase purchasing power. Group Influence refers to social pressures on spending, not the amount of goods and services you can buy. Prosperity describes overall economic well-being and wealth, which is broader than the immediate ability to purchase. SBA refers to the Small Business Administration, not personal purchasing capacity.

Purchasing power is the ability to purchase goods and services. It describes how much you can buy with a given amount of money. Inflation or rising prices reduce purchasing power because the same money buys less over time, while higher income or falling prices increase purchasing power.

Group Influence refers to social pressures on spending, not the amount of goods and services you can buy. Prosperity describes overall economic well-being and wealth, which is broader than the immediate ability to purchase. SBA refers to the Small Business Administration, not personal purchasing capacity.