The Economic Way of Thinking Stresses That

question 216

Multiple Choice

The economic way of thinking stresses that

• A) changes in personal costs and benefits generally do not influence human behavior.
• B) incentives matter--when an option becomes less costly, people will be more likely to choose it.
• C) if one individual gains from an economic activity, then someone else must lose.
• D) goods provided by government do not consume valuable scarce resources since government activity is not part of the market economy.

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Definitions:

Equity

The value of an owner’s interest in a property or a company, after all debts and liabilities have been deducted.

Income Statement

An income statement is a financial statement that shows a company's financial performance over a specific accounting period, highlighting revenue, expenses, and profit or loss.

Revenues

The total amount of money received by the company for goods sold or services provided during a specific time period.

Net Income

The total profit of a business after deducting all expenses, taxes, and losses, indicating its financial performance over a reporting period.