In Chapter 1, Economic Thinking Is Discussed Around a Model

question 8

Multiple Choice

In Chapter 1, economic thinking is discussed around a model of the "zero-sum game." This implies:

• A) that one player's gain is another one's loss
• B) that the economy is essentially dynamic and value-adding
• C) that the economy is essentially static
• D) that the economy can be viewed as a casino for gamblers
• E) that the sum of all efforts is often zero for everyone

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Definitions:

Avoidance

A legal principle that allows a party to cancel or annul a contract under certain conditions.

Profit Distributions

The allocation of a portion of a company's earnings to its shareholders, typically in the form of dividends or share buybacks.

De Facto Corporation

A business operating as if it were a legally incorporated company, despite not having completed the formal incorporation process, and is often treated as such by the law under certain conditions.

Creditor

An entity to which a debtor owes money.