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Which of the Following Reasons for the Existence of Profits

Question 63

Multiple Choice

Which of the following reasons for the existence of profits is LEAST socially justifiable?


A) Profits serve as an incentive for risk taking.
B) Profits serve to signal entry and exit of resources in an economic system.
C) Profits reward economically efficient producers.
D) Profits appear where there are contrived scarcities in product or resource markets.
E) Profits accrue to successful innovators.

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