If Two People Exchange an Apple, They Each Still Have

question 6

Multiple Choice

If two people exchange an apple, they each still have just one apple, but if they exchange ideas, they now each have two ideas. This is an illustration of

• A) the importance of natural resources.
• B) the principle of specialization of labour.
• C) the difference between information and all the other factors of production.
• D) the importance of profit in market economies.
• E) the importance of government regulation.

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Definitions:

Net Profit Margin

A financial metric that measures how much of every dollar of revenues is translated into profits, after all expenses are deducted.

Earnings Per Share

A measure of a company's profitability, calculated as net income divided by the number of outstanding shares.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period, highlighting operating performance.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.