Technological Improvements Are More Likely to Occur If

question 12

Multiple Choice

Technological improvements are more likely to occur if

• A)the economy is centrally planned.
• B)entrepreneurs are compensated with higher profits for taking risks.
• C)economic decisions are made by politicians rather than entrepreneurs.
• D)companies face little competition in their markets.

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Definitions:

Faculty Level Costs

The expenses associated with employing teaching and academic staff at educational institutions.

Level of Fixed Costs

The total amount of costs that do not vary with production volume, such as rent, salaries, and insurance.

Level of Risk

A measure of the uncertainty associated with an investment or decision, often evaluated in terms of the variability of returns or potential for loss.

Break-Even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and the business is just covering all its expenses.