Which of the Following Explains Why Business Owners Have a Strong

question 176

Multiple Choice

Which of the following explains why business owners have a strong incentive to strive for operational efficiency?

• A) they recognize that operational efficiency promotes the public interest.
• B) since the owners are residual income claimants, increased efficiency will mean a higher income for the owners.
• C) if production is not conducted efficiently, the firm will ship jobs and capital out of the domestic market in order to be able to compete effectively.
• D) Increased operational efficiency allows the firm to receive government tax breaks.

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Definitions:

PTSD

Post-Traumatic Stress Disorder, a psychiatric disorder that may occur in people who have experienced or witnessed a traumatic event such as a natural disaster, a serious accident, a terrorist act, war/combat, or rape or who have been threatened with death, sexual violence, or serious injury.

Hypochondria

An excessive preoccupation with the fear of having a serious illness, despite medical reassurance to the contrary.

Claustrophobia

An anxiety disorder characterized by an irrational fear of being in enclosed or narrow spaces.

Enclosed Places

Spaces that are fully or partially surrounded by walls and a ceiling, often creating a separate and distinct environment from the outside.