Ann Is a Manager at a Private Construction Company

question 1

Multiple Choice

Ann is a manager at a private construction company. David works in the city planning department of the government. Based on this information, which of the following is most likely to be true?

• A) David will make decisions based on the value generated to shareholders.
• B) Ann will not have to factor in risk or uncertainty when making a decision.
• C) David will make decisions based on maximization of profit.
• D) Ann's decisions will be guided by the motive of social welfare.
• E) David will make decisions based on benefit-cost analysis.

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Definitions:

Supply of Land

The total availability of land resources that can be used for various purposes, often considered perfectly inelastic.

Perfectly Inelastic

A situation where the quantity demanded or supplied of a good does not change in response to a change in price.

Relatively Elastic

Describes a situation where the demand for a product is sensitive to changes in price, meaning a small price change can lead to a large change in quantity demanded.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs produced to inputs used in the production process.