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Which of the Following Statements Is TRUE? Economists Normally Assume

question 45

Multiple Choice

Which of the following statements is TRUE? Economists normally assume that the goal of the firm is to:
I. sell as much of their product as possible.
II. set the price of their product as high as possible.
III. maximize profit.


Definitions:

Illusory Correlation

A tendency to assume an association between two rare occurrences, such as being in a minority group and performing negative actions.

Minority Group

A demographic group that is smaller in numbers within a larger society and is often subjected to differing treatment or discrimination.

Negative Actions

Behaviors or deeds that have harmful, destructive, or undesirable outcomes.

Illusory Correlations

The perception of a relationship between two variables even when no such relationship exists.

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