The Central Question in Economics Is How to

question 159

Multiple Choice

The central question in economics is how to

• A)make the best use of scarce resources.
• B)use government planning agencies.
• C)induce people to want less.
• D)increase human knowledge.

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Definitions:

Net Cash Inflows

The difference between all cash receipts and all cash payments within a particular period, reflecting the net increase in cash available.

Straight-Line

A depreciation method that allocates an equal amount of the depreciable cost of an asset to each accounting period of its useful life.

Annual Rate of Return

The percentage of profit or loss made from an investment in a year, taking into account both capital gains and interest or dividends received.

Operating Expenses

Expenses incurred in the process of earning sales revenue.