Ernie and Earl Have a Logging Company in Northern British

question 113

Multiple Choice

Ernie and Earl have a logging company in Northern British Columbia, and they employ 15 people. Which sector of the economy are these people engaged in?

• A) the primary sector
• B) the secondary sector
• C) the tertiary sector
• D) the social reproduction sector

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Definitions:

Maximizing Profits

A profit strategy that relies primarily on economic theory. If a firm can accurately specify a mathematical model that captures all the factors required to explain and predict sales and profits, it should be able to identify the price at which its profits are maximized.

Price Levels

Refers to the average of current prices across the entire spectrum of goods and services produced in the economy, often measured over time to assess inflation or deflation.

Sales

The activities and processes that lead to the selling of goods or services.

Status Quo

Refers to the current state or existing set of affairs, often used in the context of maintaining the same condition without change.