Which of the Following Is Part of the Economic Way

question 147

Multiple Choice

Which of the following is part of the economic way of thinking?

• A) Opportunity costs will always be incurred when scarce resources are used to produce a good.
• B) When the cost of an option increases, individuals will be less likely to choose it.
• C) In addition to their immediate direct effects, economic actions often generate secondary effects that are observable only after the passage of time.
• D) All of the above are part of the economic way of thinking.

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Definitions:

Residual Income

The income that exceeds the minimum required return on investment, often used as a performance measure in managerial accounting.

Required Rate Of Return

The minimum annual percentage return an investor expects to achieve from an investment, considering the risk involved.

Net Operating Income

A financial metric indicating the income generated from a company's core business operations, excluding deductions of taxes and interest.

Turnover

The rate at which inventory or assets are sold and replaced over a certain period of time, indicating the efficiency of sales or the usage of assets.