Economic analysis suggest that in a competitive market economy, when an entrepreneur has made a large profit,
a. consumer benefits must have been reduced by at least the amount of the profit.
b. other producers have lost profits of the same size.
c. economic progress for society as a whole has normally been enhanced.
d. luck or chance, rather than productive activity, has nearly always been the largest factor.
C
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In a simple Keynesian model, a decrease in income leads to a decrease in
A) consumption. B) investment. C) the price level. D) the money supply.
Which term measures production well and indicates when a country is materially better or worse off in terms of jobs and incomes?
a. GDP b. Standard of living c. GDP per capita d. Nominal GDP
All but one of the following are elements of the economic way of thinking. Which one is not part of the economic way of thinking?
a. Incentives matter. b. The value of goods can be determined objectively. c. Economic thinking is marginal thinking. d. Information is scarce.
In economics, the term for a person who reduces transaction costs by arranging trades for buyers and sellers is
a. an exchange broker. b. a middleman. c. a transactions specialist. d. an opportunity finder.