How Do Economists View Profits

question 200

Multiple Choice

How do economists view profits?

• A) Profits are an asset the business holds.
• B) Profits are one of the costs paid to a factor of production.
• C) Profits are guaranteed as long as a firm operates ethically.
• D) The firm's profit equals the sum of all payments to the 5 factors of production.

---

Definitions:

Pooled Variance

Acombined estimate of variance for two or more groups in a sample, assuming that the populations have equal variances.

Sampling Distribution

The distribution of a statistic (like the mean or variance) derived from a large number of samples drawn from a specific population.

Sample Mean Difference

The difference between the average values from two samples, used in hypothesis testing to compare two groups.

Equal-variances Test

A statistical test used to determine if two populations have the same variance.