Which of the Following Statements Is Correct

question 107

Multiple Choice

Which of the following statements is correct?

• A) Economic profits induce firms to enter an industry; losses encourage firms to leave.
• B) Economic profits induce firms to leave an industry; profits encourage firms to leave.
• C) Economic profits and losses have no significant impact on the growth or decline of an industry.
• D) Normal profits will cause an industry to expand.

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Definitions:

Top-Down Processing

Top-down processing is a cognitive process in which our expectations or previous knowledge guide the interpretation of sensory information.

Bottom-Up Processing

A perception approach where processing starts with sensory input and works up to the formation of a perception.

Telepathy

A supposed method of communication from one mind to another without using sensory channels or physical interaction.

Subliminal Stimuli

External stimuli that are below the threshold for conscious perception, yet can influence thoughts, feelings, or actions.