Use the Figure Below to Answer the Following Question(s)

question 321

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 6-2

Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. When the structure of production and consumption for a good places it in quadrant B,

• A) consumers have little incentive to search out and patronize low-cost suppliers.
• B) private producers of such goods will have little incentive to operate efficiently and to keep prices low.
• C) goods and services will only be supplied if consumers are willing to pay an amount sufficient to cover their production costs.
• D) both a and b, but not c, will be true.

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Definitions:

Physiological Drives

Refers to basic bodily needs that drive behavior, such as hunger, thirst, and need for sleep.

Objective Reality

The state of things as they actually exist, independently of any thoughts or beliefs about them.

Unconscious Conflicts

Internal struggles stemming from desires, emotions, and thoughts that are not within our conscious awareness but influence our behavior.

Therapist

A professional trained to provide treatment and guidance to people suffering from psychological, emotional, or behavioral issues.