When an Investment Project Generates Output That Is Valued More

question 47

Multiple Choice

When an investment project generates output that is valued more highly than the value of the resources required for its production,

• A) undertaking the project will create wealth.
• B) it will be unprofitable to undertake such a project.
• C) entrepreneurs seeking profit will have little incentive to undertake such projects.
• D) entrepreneurs will have to be subsidized by the government if they are going to earn a profit.

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired result; the ability of a thing or action to achieve its intended outcome.

Learning Process

refers to the methods or pathway through which individuals acquire new knowledge, behaviors, skills, values, or preferences.

Negative Reinforcement

A method in behavioral psychology where a response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or stimulus.

Scolded

To reprimand or criticize someone angrily for a wrongdoing.