Suppose a Typical Firm in a Particular Industry Is Making

question 26

Multiple Choice

Suppose a typical firm in a particular industry is making positive economic profits. These economic profits

• A) reflect a waste of society's scarce resources and reflect inefficient production.
• B) signal owners of factors of production to move their resources out of that industry.
• C) imply that accounting costs are greater than economic costs in this industry.
• D) signal owners of factors of production to move resources into this industry.

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Definitions:

Drive-reduction Theory

A theory in psychology suggesting that behavior is motivated by the desire to reduce internal tension caused by unmet needs.

Attachment Relationships

The emotional bonds formed between individuals, crucial for personal development and influencing lifelong relational patterns.

Self-conscious Emotion

Emotions that involve self-awareness and reflection on personal actions, such as shame, guilt, and pride.

Drive-reduction Theory

A motivational theory suggesting that psychological needs create an aroused state that drives organisms to satisfy those needs.