Frank Knight said that profit
A. is indistinguishable from risk.
B. exists when the probability of a given event cannot be predicted reliably.
C. can be incorporated into the cost structure of production.
D. forces entrepreneurs to make unwise decisions with imperfect information.
B. exists when the probability of a given event cannot be predicted reliably.
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An increase in consumer wealth shifts the consumption function downward
a. True b. False Indicate whether the statement is true or false
The process of negotiation between union and management to arrive at a labor contract is called
a. arbitration b. mediation c. reconciliation d. collective bargaining e. impasse
The price system features
A) exchanges made in currency only. B) voluntary exchange that makes both the consumer and producer better off. C) exchanges made only on a barter basis. D) an exchange in which consumer is made better off and the producer is made worse off.
Assume the demand function for good X can be written as Qd = 80 - 3Px + 2Py + 10I where Px = the price of X, Py = the price of good Y, and I = Consumer income. This equation implies that X and Y are substitutes
Indicate whether the statement is true or false