Clarissa Mae L.

Buta
CBEA-20-101A
ENTREP2
FINAL EXAM

1. A scenario known as a prisoner's dilemma occurs when two people must choose a
course of action that will either be advantageous or disadvantageous. Both parties must
decide whether to work together or not. It offers a framework for achieving coordination
between collaboration and competitiveness in the workplace.
2. Economic rent was the additional money made by the utilization of entirely fixed
natural resources like land, labor markets, real estate, and monopolies. The high value
of exclusive intangible assets like patents and permits is also explained by economic
rent. These things are collectively referred to as scarcity rents.

3. The loss or discrepancy between the entire sales income from a product and the cost
of all inputs is known as economic profit. Economic profit forecasts a company's
decision to enter or leave a market. In order to establish a monopoly, it relies on the
viability of the existing economic model. is essential for business owners, investors,
shareholders, and stakeholders when deciding on a certain business strategy or the
stock market.

4. The unequal distribution of income among a population is known as income

inequality. Income inequality is larger the less evenly distributed the income is. Wealth
inequality, or the unequal distribution of wealth, frequently coexists with income
disparity. Income inequality may be directly addressed by either raising the incomes of
the poorest people or lowering the incomes of the richest people.

5. People who are in poverty don't have enough money to meet their fundamental
necessities, such as housing, food, clothing, and transportation. Lack of money or
income is referred to as poverty when it prevents people from surviving or acquiring the
basics for a fulfilling existence. Programs that assist impoverished people to attain skills,
employment, and education are a longer-term solution to the problem of poverty.