Which of the Following Statements About Self-Interest in a Market

question 96

Multiple Choice

Which of the following statements about self-interest in a market system is false?

• A)Self-interest usually motivates an individual to deliver something of value to others.
• B)Self-interest of entrepreneurs implies seeking maximum profits or minimum losses.
• C)Self-interest applies only to capitalists and entrepreneurs, not to workers employed by others.
• D)In a market system, consumers are just like firms: self-interest is what motivates them.

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Definitions:

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction.

Internal Users

Individuals within the organization, such as managers and employees, who use financial information to make decisions regarding the company's operations.

Nonexecutive Employees

Workers who do not hold executive or managerial positions within a company, often involved in the daily operational activities.

Lenders

Entities that provide financial resources to individuals or organizations with the expectation that the funds will be repaid, typically with interest.