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

question 125

Multiple Choice

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

• A)Self-interest applies only to consumers, not to entrepreneurs.
• B)Self-interest of entrepreneurs implies seeking maximum profits or minimum losses.
• C)Self-interest usually motivates an individual to deliver something of value to others.
• D)In a market system, self-interest motivates property owners to try to get the highest rent or price for their property.

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Definitions:

Phineas Gage Matrix

Syndrome related to injury of the frontal cortex. Consists of cognitive dysfunctions (such as poor planning, inadequate decision-making, inability to take another’s perspective, and problems in sustaining employment) and emotional problems (such as shallow affect, lack of an enriched emotional life, lack of passion and initiative, and a diminished sense of pleasure and pain).

Frontal Lobe

The part of the cerebrum that is situated at the top front part of each hemisphere and controls voluntary muscle movements and higher-level cognitive functions such as planning, goal setting, and decision-making.

Emotional Intensity

The degree of strength or depth of an individual's emotional responses to situations or stimuli.

Social Referencing

The process by which individuals look to others in their environment for cues on how to react or behave in specific situations.