The Principle of Substitution Plays a Central Role in Resource

question 40

Multiple Choice

The principle of substitution plays a central role in resource allocation because it demonstrates that

• A) firms will find it profitable to make abundant use of relatively scarce factors.
• B) prices will be relatively low for those factors for which demand is high relative to supply.
• C) firms can use all factors of production interchangeably with no impact on their costs.
• D) methods of producing the same commodity will not differ from one country to another.
• E) relative factor prices reflect relative scarcities of factors in the economy and so firms will find it profitable to make abundant use of relatively abundant factors.

Understand societal and cultural influences on the prevalence and treatment of substance use and gambling disorders.

Understand the major health consequences of long-term excessive drinking.

Identify the effects and dangers of common stimulants and depressants on the central nervous system.

Recognize different types of substance use disorders and their treatments.

---

Definitions:

Local Practices

Customs, methods, or activities that are specific to a particular area, community, or culture.

Compensating

Providing remuneration or benefits to employees in return for their work and contribution to the organization.

Global Arena

The international landscape for business or politics where interactions and competitions occur on a global scale.

International HRM

Concerns with managing human resources in multinational corporations, focusing on policies and practices that address the challenges of operating in multiple countries.