Which of the Following Reasons for the Existence of Profits

question 39

Multiple Choice

Which of the following reasons for the existence of profits is LEAST socially justifiable?

• A) Profits serve as an incentive for risk taking.
• B) Profits serve to signal entry and exit of resources in an economic system.
• C) Profits reward economically efficient producers.
• D) Profits appear where there are contrived scarcities in product or resource markets.
• E) Profits accrue to successful innovators.

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Definitions:

Regional Shopping Center

A retail location consisting of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores.

Strip Mall

A retail location consisting of a cluster of neighborhood stores to serve people who are within a 5- to 10-minute drive.

Central Business District

The oldest retail setting, usually located in the community’s downtown area.

Old-Town District

An area within a city known for its historical architecture and often sought after for cultural, tourism, and commercial activities.