The Variability of Business Profits

question 114

Multiple Choice

The variability of business profits

• A)helps explain the instability of investments over time.
• B)does not affect investment spending, which depends on expected profits, not current profits.
• C)explains why the durability of capital goods is variable.
• D)causes the variations in consumption spending over time.

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Definitions:

Discrimination Learning

The process whereby organisms learn to make different responses to similar but distinct stimuli, highlighting the ability to perceive differences in stimuli.

Hull-Spence Model

a theory combining Hull's drive reduction theory and Spence's learned motivation theory, focusing on how reinforcers and cues control behavior.

Noncontinuity View

A perspective that suggests changes or phenomena occur in discrete steps or stages rather than gradually.

Continuity View

The perspective that development is a gradual, continuous process, without sudden changes or distinct stages.