Which of the Following Best Defines the Subject of Economics

question 592

Multiple Choice

Which of the following best defines the subject of economics?

• A) the study of choices that businesses make to maximize profit
• B) the art of making money
• C) the science that studies unemployment, inflation, and economic stability
• D) the study of choices made to cope with scarcity

Analyze the effects of adjusting entries on financial statements.

Comprehend the relationship among different financial statements.

Calculate net income, retained earnings, and earnings per share.

Understand the process for preparing closing entries in accounting.

---

Definitions:

Asset-Intensive

Describes businesses or industries that require significant investments in physical assets, such as machinery, plants, or equipment, to operate.

High-Margin

Referring to products, services, or businesses that generate a significantly higher percentage of profit in relation to their sales or revenue, indicating efficiency in managing costs or the ability to charge premium prices.

Herbert Simon

An American economist, political scientist, and cognitive psychologist known for his research in the decision-making process within economic and organizational environments.

Rational Process

A systematic approach to problem-solving based on logical reasoning, critical analysis, and factual evidence.