Which of the Following Statements Is Correct

question 114

Multiple Choice

Which of the following statements is correct?

• A) Economics is a natural science.
• B) In large measure, economics is the study of how people make choices.
• C) If poverty was eliminated there would be no reason to study economics.
• D) Economic analysis can be used to explain how societies, but not individuals, make decisions.

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Definitions:

Erosion

In finance, it refers to the gradual decline of an asset's value, or the negative impact one investment can have on the value of an existing investment.

Incremental Cash Flows

The additional cash flow a company generates from undertaking a new project, considering only the revenues and costs directly caused by the project.

Incremental Cash Flows

The additional cash flow a business receives from undertaking a new project.

Sunk Costs

Outlays already made that cannot be refunded or retrieved.