​An Economic System Is

question 18

Multiple Choice

​An economic system is:

• A)​an organizational arrangement for producing and distributing goods
• B)​an organizational arrangement for producing, distributing, and consuming goods
• C)​a social model for trade of produced goods within agricultural and industrial societies
• D)​a social process of distributing products within an industrial society

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Definitions:

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.

Depreciation Expense

The allocation of an asset's cost over its useful life, reflecting the asset's consumption, wear, and tear.

Dividends Paid

The total amount of earnings distributed by a company to its shareholders as a reward for their investment.

Inventory Increase

This occurs when there is a rise in the quantity or value of goods held by a company, signaling a buildup of stock.