Which of the Following Statements Best Describes the Study of Economics

question 167

Multiple Choice

Which of the following statements best describes the study of economics? Economics studies how

• A)to organize production so that scarcity does not occur.
• B)businesses reach decisions.
• C)we make choices in the face of scarcity.
• D)to create incentives so that scarcity does not exist.
• E)firms make profits.

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Definitions:

Net Operating Working Capital

A financial metric that calculates the difference between a company's operating current assets and its operating current liabilities.

Current Assets

Assets on a balance sheet expected to be converted into cash, sold, or consumed within one year or the business cycle, whichever is longer.

Current Liabilities

Current Liabilities are a company's debts or obligations that are due to be paid to creditors within one year, including accounts payable, short-term loans, and other short-term financial obligations.

Investor-Supplied Operating Assets

Assets provided by investors for the purpose of generating sales and profits for the business, such as plant, equipment, and inventory.