Because of Scarcity

question 40

Multiple Choice

Because of scarcity

• A) individuals and societies are allowed no choice about which wants and needs to satisfy.
• B) individuals and societies must choose which wants and needs to satisfy.
• C) all choices about wants and using resources must be made by the government.
• D) choices can be made about which wants to satisfy,but not about which resources to use.
• E) choices must be made about which resources to use,but not about which wants to satisfy.

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Definitions:

Equity Method

An accounting method used to assess the investments in associate companies where the investor has significant influence but does not control the company outright.

Consolidation Process

The method of combining the financial statements of a parent company with those of its subsidiaries to present as one entity.

Net Income

Net income is the total amount of profit a company makes after all expenses, taxes, and costs have been subtracted from its total revenue.

Equity Method

An accounting technique used to record investments in other companies where the investor has significant influence but not full control, typically between 20% and 50% ownership.