"An Objective of Firms Is to Maximize Profits

question 39

Multiple Choice

"An objective of firms is to maximize profits." This statement

• A)has been proven by empirical testing to be always true.
• B)is an assumption used by economists to predict the behaviour of firms.
• C)is a normative statement and thus cannot be tested.
• D)applies only to corporations.
• E)is an unrealistic assumption,and therefore of little use to economists.

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Definitions:

Death Penalty

A legal punishment in which a person is put to death by the state as a penalty for a crime.

Continuance

The state of remaining in a particular situation or condition over a period.

Voir Dire

A legal process in jury selection where potential jurors are questioned about their qualifications and ability to judge a case impartially.

Change Of Venue

Moving a trial to a new location where there has been less pretrial publicity.