Which of the Following Is an Assumption That Economists Make

question 28

Multiple Choice

Which of the following is an assumption that economists make?

• A) Most people possess entrepreneurial talent.
• B) People are very good at assessing the costs of decisions accurately.
• C) Individuals and firms will act to provide the things people want.
• D) Individuals usually fail to optimize the use of their resources because they think on the margin.

Understand the complexity and dynamics of buyer-supplier networks.

Recognize the potential risks and benefits associated with buyer-supplier partnerships.

Understand the concept and implications of early supplier involvement (ESI) in procurement.

Identify strategies for managing undesirable buyer-supplier relationship scenarios.

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Definitions:

EBIT

A profitability metric for a company that omits expenses related to interest and income taxes, known as Earnings Before Interest and Taxes.

ROE

Return on Equity, a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Repurchase Shares

The act of a company buying back its own shares from the marketplace, reducing the amount of outstanding stock.

Debt-Equity Ratio

A ratio showcasing the relative utilization of debt and equity in the financial structuring of a company’s assets.