Scelta multipla
The deeds and actions of a producer in deciding what and how much to produce indicate what kind of authority in an economy?
164
views
1. Introduction to Microeconomics
Introduction to Economics
Scelta multipla
In a market system, firms are subject to business risk primarily because:
A
prices are fixed by the government
B
resources are allocated solely by tradition
C
profits and losses depend on consumer demand and competition
D
government guarantees all firms a minimum profit
Guida verificata passo dopo passo1
Understand the concept of business risk: Business risk refers to the uncertainty firms face regarding their profits due to factors like changes in consumer demand, competition, and market conditions.
Analyze each option in the context of a market system: In a market system, prices are generally determined by supply and demand, not fixed by the government, so fixed prices do not typically cause business risk.
Consider the role of resource allocation: If resources were allocated solely by tradition, this would limit flexibility but is not the primary source of business risk in a market system.
Recognize that government guarantees of minimum profit would reduce business risk, but such guarantees are not characteristic of a market system.
Conclude that the main source of business risk in a market system is that profits and losses depend on consumer demand and competition, which are inherently uncertain and variable.
Video correlati
Pratica correlata
