-Private Property Rights Help to Ensure an Efficient Use of Resources

question 26

True/False

-Private property rights help to ensure an efficient use of resources, because owners of the resources must bear the costs of inefficient use.

Understand the importance and function of inventory in supply chain efficiency and responsiveness.

Comprehend the key drivers of supply chain performance, including inventory, transportation, and information.

Analyze the financial impacts of supply chain decisions on metrics such as the cash-to-case cycle, return on equity (ROE), and accounts receivable turnover.

Recognize the significance of strategic decisions in procurement, sourcing, and supply chain structure.

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Definitions:

Positive Economics

A branch of economics that focuses on objective analysis and the description of how the economy functions, as opposed to normative economics that involves value judgments.

Normative Economics

An area of economics that makes assessments of economic fairness or desired economic outcomes and aims of public policy.

Consequences

The outcomes or effects resulting from a particular action or set of conditions.

Negative Relationship

A relationship between two variables, X and Y, in which a decrease in X is associated with an increase in Y and an increase in X is associated with a decrease in Y.