Which of the Following Is not considered a Basic Economic

question 41

Multiple Choice

Which of the following is not considered a basic economic force?

• A) Fiscal policy
• B) Monetary policy
• C) Inflation
• D) P/E ratio
• E) None of the above (that is, all are basic economic forces)

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Definitions:

Discarding

The act of getting rid of something that is no longer useful or desired, within a context like inventory management or manufacturing.

Fixed Assets

Permanent tangible properties engaged in business operations, which are unlikely to be used up or exchanged for cash in the span of a year.

Goodwill

An intangible asset that is created from such favorable factors as location, product quality, reputation, and managerial skill.

Competitive Advantage

An advantage that allows a business to generate greater sales or margins compared to its market competitors, often through unique resources, capabilities, or efficiencies.