In Economics, the Concept That Individuals Are Motivated by Self-Interest

question 15

Multiple Choice

In economics, the concept that individuals are motivated by self-interest and respond predictably to opportunities for gain is known as

• A)rational self-interest.
• B)altruism.
• C)sufficiency.
• D)empiricism.

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Definitions:

Step-Down Method

A cost allocation method that sequentially allocates service department costs to other service departments and then to production departments.

Janitorial Department

A division within an organization dedicated to the maintenance and cleaning of buildings and facilities.

Allocated Based on Space

The distribution of resources or costs among departments or projects according to the physical area they occupy or require.

Personnel Department Cost

Expenses related to the operation of a human resources department, including salaries, training, and benefits administration.