Economics Is a Social Science That Involves the Study of How

question 190

Multiple Choice

Economics is a social science that involves the study of how individuals, firms, and societies

• A) maximize happiness.
• B) maximize incomes.
• C) choose among alternatives to satisfy their unlimited wants.
• D) develop their tastes and preferences.

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Definitions:

Common Equity

The portion of a company's equity that is held by common shareholders, represented by common stock.

Net Income

The profit a company generates after all expenses, taxes, and costs have been subtracted from total revenue.

Taxes

Compulsory financial charges imposed by a government on individuals, entities, or transactions to fund public expenditures.

Basic Earning Power

An indicator of a company's profitability from operations, expressed as EBIT (Earnings Before Interest and Taxes) divided by total assets.