Quality of Earnings Refers To

question 9

Multiple Choice

Quality of earnings refers to:

• A)The accuracy of the net income calculation.
• B)A company's ability to continue earning at its current level.
• C)How closely earnings per share agree to analyst predictions.
• D)The percentage of net income to total revenue.

Apply the concept of marginal utility in optimal consumption decisions.

Analyze and interpret indifference curves and budget constraints.

Understand the concept of income inequality within the United States and compare it to other countries.

Recognize the factors contributing to changes in the income distribution over time.

---

Definitions:

Internalized

The process of incorporating external costs or benefits into one's own decision-making criteria.

Externality

A consequence of an economic activity experienced by unrelated third parties, which can be either positive (benefits) or negative (costs).

Gasoline

A highly flammable liquid derived from petroleum, used mainly as fuel in internal combustion engines.

Social Value

The importance or worth that a product, service, or action has to society, including both economic and non-economic factors.