Within the Debate Regarding Differential Performance, Rumelt (1991) Is of the View

question 20

Multiple Choice

Within the debate regarding differential performance, Rumelt (1991) is of the view that:

• A) Industry is the main driver of firm performance
• B) Factors at the individual firm level, such as resources and strategy, are the main drivers of firm performance
• C) Factors in the external environment are the main drivers of firm performance
• D) Leadership is the main driver of firm performance

Recognize the role of property rights in market efficiency.

Understand how market equilibrium affects efficiency and total surplus.

Recognize the concept of market failure and externalities.

Understand the impact of government interventions on market efficiency and surplus.

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Definitions:

Gross Domestic Product (GDP)

The sum total of the market or economic value of all products and services finalized within a country's geographical limits during a defined period.

Gross Domestic Product (GDP)

The full valuation, in market or monetary terms, of all end goods and services generated within the confines of a country's borders in a particular time span.

Household Production

The process by which families produce goods and services for their own use, typically including tasks such as cooking, cleaning, and childcare.

Leakages

Economic terms referring to the outflow of funds from the economy, such as savings, taxes, and imports, that can reduce the impact of investment and government spending.