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Refer to the Following Paragraph to Answer the Questions Below

question 9

Multiple Choice

Refer to the following paragraph to answer the questions below.
After graduating from university, Samantha got a job with the county government. One year into her new job, she learned that Big Corporation planned to build a huge new factory on farmland outside a quiet, small town of Smallsville that had 2,000 residents. Big Corporation flew in a high-powered public relations team of five people who showed a slick video, threw out a few statistics, and promised that many new jobs and income would come to the county and town. Two of the public relations people said they were Factory Site Experts. They said that in the three other locations where Big Corporation had built factories in the past two years, the local people were very happy. They said the same would occur in Smallsville and further study was unnecessary. Just before the County Board was about to vote for approval, Samantha asked some questions. How would the new factory with 1,000 employees affect the way of life in Smallsville? Would the new factory create traffic congestion, noise, and air or water pollution? Would the town need to upgrade its police, fire, or ambulance services? Would it raise housing prices? What percent of the jobs would go to local people, and would the jobs be well-paying and stable? Would there be three shifts with some shifts ending late at night or early in the morning? How would the local schools and sewage treatment services be affected? Would the new factory's location adjacent to the area's only park limit the use of the park and its playground and bicycle trail by local children?
-Howard was recently named president of the Cable Corporation of America. He said he was going to institute PPBS in order to improve efficiency and productivity. He said PPBS was used by the U.S. Department of Defense in the 1960s and incorporates evaluation research into running an organization. What does PPBS stand for?

Definitions:

Purely Competitive Industry

A market structure where many firms sell identical products, and no single company can influence the market price due to competition.

Profit

The financial gain realized when the revenue gained from a business activity exceeds the costs, expenses, and taxes needed to sustain the activity.

Normal Profit

The minimum level of profit necessary for a firm to remain competitive in the market, essentially covering opportunity costs.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in a market.