If a Local Leader in a Developing Nation Claims That

question 224

Multiple Choice

If a local leader in a developing nation claims that there is little or no correlation between a person's efforts and the economic rewards that are given to that person, this leader is most likely expressing a

• A)description of the vicious cycle of poverty.
• B)theory of exploitation and dependence.
• C)capricious view of the universe.
• D)rationale for neocolonialism.

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Definitions:

Economic Profit

The surplus or profit generated by a company after accounting for both explicit and implicit costs, indicating financial performance.

Maximum Earning

The highest possible income or profit that an entity or individual can achieve under given conditions.

Contestable Market

A market in which the costs of entry and exit are low, so a firm risks little by entering. Efficient production and zero economic profits should prevail in a contestable market.

Economic Profits

Profits earned by a firm after accounting for both its explicit and implicit costs, including opportunity costs.