Which of the Following Is a Characteristic of an Institution

question 20

Multiple Choice

Which of the following is a characteristic of an institution?

• A) Institutions are determined by individual opinions without considering the government's preferences.
• B) Institutions place constraints on the behavior of economic agents.
• C) Institutions have very little influence on a nation's economic prosperity.
• D) The institutions of a nation are permanent and cannot be changed over time.

---

Definitions:

Net Operating Income

A business's income after deducting operating costs, not including taxes or interest.

Break-even Points

The level of sales at which total revenues equal total costs, resulting in no profit or loss.

Break-even Sales

Break-even sales represent the amount of revenue needed to cover all fixed and variable costs, indicating the point at which a business neither makes a profit nor incurs a loss.

Break-even Sales

The level of sales at which a business generates revenue exactly equal to its costs, resulting in no profit or loss.