Profits

question 35

Multiple Choice

Profits

• A) are the largest component of GDP.
• B) are a reward for the productivity of land.
• C) have no useful function in a capitalistic economy.
• D) primarily result from the exploitation of labor.
• E) vary greatly from year to year and behave more erratically than wages.

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Definitions:

Previously Undisclosed Principal

A principal whose identity was not revealed by the agent at the time of entering into a contract with a third party.

Third Party

An entity that is not directly involved in a transaction or contract but may be affected by it or may have interests that are affected.

Constructive Notice

Notice of agency termination that is usually given by publishing an announcement in a newspaper.

Agency Termination

The act of ending the relationship between an agent and their principal, which can occur for various reasons including mutual agreement, achievement of the agency's purpose, or breach of contract.