In Mixed Economies,economic Behaviour Is

question 106

Multiple Choice

In mixed economies,economic behaviour is

• A)largely determined by a central authority.
• B)based primarily on custom and habit.
• C)directed only by self-interest.
• D)affected by elements of tradition,government command,and market incentives.
• E)random and unpredictable.

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Definitions:

Sales Level

The quantity or volume of products or services sold or targeted to be sold within a specific period.

Zero NPV

A situation where the net present value (NPV) of an investment is zero, indicating that the investment is expected to break even and not generate any net profit or loss over time.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in its sales volume, indicating the impact of fixed costs on earnings.

Fixed Production Costs

Costs that do not change with the level of production or output, such as rent, salaries, and insurance premiums, which a company must pay regardless of its level of production.