Imagine That the Editor of Your Local Newspaper Writes a Column

question 73

Multiple Choice

Imagine that the editor of your local newspaper writes a column supporting a reduction in government intervention with a transfer of more rights to individual citizens. The editor bases this argument on the assumption that people are rational beings who will fulfill their maximum potential as long as others do not infringe on their basic human needs. This editor's views reflect those seen in the _____ perspective.

• A)evolutionary
• B)humanistic
• C)psychodynamic
• D)behavioral

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Definitions:

Economic Profit

Economic profit is the profit from producing goods and services while factoring in the full costs of its resources, including opportunity costs.

Average Total Cost

The total cost divided by the quantity produced, reflecting the per unit cost of production.

Average Variable Cost

The variable cost per unit of output, which includes costs that vary with production, such as materials and labor.

Economic Profit

The net outcome of subtracting all expenses, both overt and hidden, from a corporation's aggregate earnings.