Economists Use the Word Equity to Describe a Situation in Which

question 18

Multiple Choice

Economists use the word equity to describe a situation in which

• A)each member of society has the same income.
• B)each member of society has access to abundant quantities of goods and services, regardless of his or her income.
• C)society is getting the maximum benefits from its scarce resources.
• D)the benefits of society's resources are distributed fairly among society's members.

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Definitions:

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenues and expenses to show net income or loss.

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses from total revenue.

Percentage Increase

A measure of how much a quantity has grown, typically expressed as a fraction of the starting value.

Ending Cash

The amount of cash available at the end of a specific accounting period, reflected in the company's financial statements.