Voluntary Exchanges Between _______ Generate Surplus

question 21

Multiple Choice

Voluntary exchanges between _______ generate surplus.

• A)firms
• B)countries
• C)individuals
• D)All of these are true.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, are deducted from total revenues.

Total Expenses

The sum of all costs and expenses incurred by a business or individual in a specified period.

Dividends Declared

The amount of earnings a company decides to distribute to its shareholders as a payout.