The Economic Function of Profits and Losses Is to

question 32

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:

Basic Psychological Needs

Fundamental requirements for psychological well-being and growth, such as autonomy, competence, and relatedness.

Autonomous Motivation

A type of motivation that comes from within an individual, driving them to engage in behavior out of personal interest or satisfaction.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, regarded as a drive or need present in everyone.

Motivated by Needs

The drive or inclination to act or behave in a certain way based on the desire to fulfill basic requirements for survival, security, belonging, esteem, and self-actualization.