Owen Had a Typewriter Shop,but He Went Out of Business

question 187

Multiple Choice

Owen had a typewriter shop,but he went out of business because no one buys typewriters anymore.Which economic principle does this statement BEST represent?

• A)Choices are necessary because resources are scarce.
• B)People usually respond to incentives,exploiting opportunities to make themselves better off.
• C)Markets move toward equilibrium.
• D)One person's spending is another person's income.

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Definitions:

Mason

A skilled tradesperson who works with brick, stone, and other durable materials to build or repair structures.

Responsibility Accounting Reports

Financial reports that measure the performance of organizational units or departments, emphasizing the accountability of managers for controllable costs.

Profit Centers

Divisions or segments within a company that are directly responsible for generating profits, evaluated based on their performance.

Net Income

The remaining profit after deducting all expenses, taxes, and costs from the total revenue.