Which of the Following Statements Is True

question 79

Multiple Choice

Which of the following statements is true?

• A) In a competitive market, the invisible hand encourages the movement of resources from more productive uses to less productive uses.
• B) In a competitive market, firms in the long run tend to earn positive economic profits.
• C) Competitive equilibrium provides incentives for entrepreneurs to shift their resources from unprofitable industries to profitable ones.
• D) At the competitive equilibrium, production occurs at the point of maximum average total cost.

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Definitions:

Analytical Intelligence

The skill to scrutinize, appraise, discern, and juxtapose information.

Practical Intelligence

The ability to solve everyday problems by utilizing knowledge gained from experience in order to effectively deal with challenges and adapt to one's environment.

Creative Intelligence

The ability to produce new products, ideas, or innovative solutions to problems within a cultural setting.

Emotional Intelligence

The capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically.