One of the Greatest Concerns Associated with Capitalism Is That

question 248

Multiple Choice

One of the greatest concerns associated with capitalism is that:

• A)It is not very successful at creating wealth.
• B)Some businesspeople may let greed guide their behavior.
• C)The amount of economic freedom enjoyed by consumers is very limited.
• D)Producers are unlikely to supply the goods and services that consumers value the most.

Understand the concept of motivation and its distinction from homeostatic control mechanisms.

Differentiate between intrinsic and extrinsic motivations and their impacts on behavior.

Identify and explain the differences and similarities between the drive theory and incentive theory of motivation.

Recognize homeostatic motivations and their role in maintaining physiological balance.

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Definitions:

Residual Income

The income that remains after subtracting all the costs of capital from the net operating income.

Net Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from operations.

Minimum Required Return

The minimum return that investors expect to earn from their investment.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials.