The Importance of Trust as a Fundamental Principle in Capitalism

question 45

Multiple Choice

The importance of trust as a fundamental principle in capitalism is illustrated by expectations that:

• A) investors will be able to earn a return on their investments.
• B) employees may be discharged at any time for any reason without notice.
• C) litigation is inevitable because parties to agreements usually break promises.
• D) insider trading proves that the economic system underlying business is flawed.

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Definitions:

Regression Toward the Mean

The phenomenon that extreme scores or outcomes are likely to be followed by less extreme ones, moving closer to the average.

Graduate Record Exam

A standardized test that is an admissions requirement for many graduate schools in the United States and other countries.

Scores

The numerical or qualitative results obtained from tests, assessments, or evaluations.

Undergraduate Coursework

Academic work, studies, or courses completed as part of a bachelor's degree program at a college or university.