The Economic Function of Profits and Losses Is to

question 271

Multiple Choice

The economic function of profits and losses is to

• A) bring about a more equal distribution of income.
• B) signal that resources should be reallocated.
• C) eliminate small firms and reduce competition.
• D) tell government which industries need to be subsidized.

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Definitions:

Cognitive Process

The mental actions or processes of acquiring knowledge and understanding through thought, experience, and the senses.

Attentional Capacities

The maximum amount or volume of information or stimuli an individual can focus on or process effectively at one time.

Fodor's Modularity Hypothesis

A theory that suggests the mind is composed of innate, specialized modules, each with a specific function.

Language Processes

Cognitive activities involved in the comprehension, use, and production of language, including listening, speaking, reading, and writing.