One Principle That Nearly All Economists Agree on When Defining

question 44

Multiple Choice

One principle that nearly all economists agree on when defining money is that it should be

• A)spendable.
• B)liquid.
• C)accepted as payment.
• D)easily transferable.
• E)All of the above are correct.

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and equipment costs.

Net Income

The net income of a business following the deduction of all costs and taxes from its earnings.