Which of the Following Statements About Self-Interest in a Market

question 96

Multiple Choice

Which of the following statements about self-interest in a market system is false?

• A)Self-interest usually motivates an individual to deliver something of value to others.
• B)Self-interest of entrepreneurs implies seeking maximum profits or minimum losses.
• C)Self-interest applies only to capitalists and entrepreneurs, not to workers employed by others.
• D)In a market system, consumers are just like firms: self-interest is what motivates them.

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Definitions:

Marginal Federal Income Tax

The rate at which the last dollar of a taxpayer's income is taxed by the federal government.

Federal Tax Revenue

Revenue the federal government receives from taxes, including income tax, corporate tax, and other taxes.

Personal Income Tax

A tax levied by the government on individuals’ income, including wages, salaries, and investment returns.

Defense Spending

Spending by the government on military and defense activities, covering wages, machinery, research, and innovation.