Which of the Following Statements Is Most Likely to Be

question 97

Multiple Choice

Which of the following statements is most likely to be true regarding private ownership?

• A)It reduces a nation's dynamism and its investments in innovation and creativity.
• B)It is most commonly found in command economies.
• C)It eliminates competitors and reduces pressure to lower production costs.
• D)It gives entrepreneurs an incentive to search for better ways of serving consumer needs.
• E)It is based on the philosophy that "the good of society is more important than the interests of an individual."

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Definitions:

Evolutionary-Developed Heuristics

Decision-making shortcuts or rules of thumb that have evolved over time to facilitate complex problem-solving with efficiency.

Rational Framework

A systematic approach based on reason and logic, often used in decision-making processes to ensure outcomes are logically derived.

Decision Making

The cognitive process of selecting a course of action among various alternatives, often involving a balance of risk and reward.

Neoclassical Economics

The dominant and conventional branch of economic theory that attempts to predict human behavior by building economic models based on simplifying assumptions about people’s motives and capabilities. These include that people are fundamentally rational; motivated almost entirely by self-interest; good at math; and unaffected by heuristics, time inconsistency, and self-control problems.