The Survival Principle States That

question 26

Multiple Choice

The survival principle states that

• A)firms must undertake social objectives to survive.
• B)the only firms that survive are those that maximize profits.
• C)the only firms that survive are those that maximize revenue.
• D)managers who fail to maximize profits should be disciplined.

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Definitions:

Normative Economics

Judgments about “what ought to be” in economic matters. Normative economic views cannot be proved false because they are based on value judgments.

Unintended Consequences

Outcomes that are not the ones foreseen or intended by a purposeful action.

Sunspot Activity

Describes the phenomena of magnetic storms on the Sun's surface, manifesting as sunspots, which can affect Earth's magnetic field and thus potentially influence global climate and telecommunications.

Association

An organized group of people who share a common interest, purpose, or profession.