Prices Can Work to Benefit the Public Interest by

question 152

Multiple Choice

Prices can work to benefit the public interest by

• A)raising corporate profit levels.
• B)improving the fairness of the distribution of income.
• C)allowing government to regulate the economy.
• D)allocating scarce resources to those who value the resource the most.

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Definitions:

Self-fulfilling Prophecy

A belief or expectation that an individual or group holds about a future event that manifests because the individual or group acts in ways that support the belief or expectation.

Theory X

A management assumption that employees are inherently lazy, require close supervision and control, and are motivated primarily by financial incentives.

Theory Y

A management approach based on the belief that employees are intrinsically motivated and will seek out responsibility and development if given the opportunity.

Self-fulfilling Prophecies

Situations where an initially false expectation leads to its own confirmation because the expectation influences behavior to make it true.