The Branch of Economics That Studies the Choices of Individuals

question 83

Multiple Choice

The branch of economics that studies the choices of individuals and businesses is

• A)macroeconomics.
• B)microeconomics.
• C)positive economics.
• D)normative economics.
• E)social economics.

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Definitions:

Fair Value

Fair value refers to the estimated market value of an asset or liability, based on current market conditions and comparable transactions, used in financial reporting.

Capital Lease

A lease considered to have the economic characteristics of asset ownership for accounting purposes.

Operating Lease

A contract that allows for the use of an asset but does not convey rights of ownership of the asset.

Capital Lease

A lease agreement in which the lessee essentially has the economic benefits and risks of ownership, often leading to the asset being recorded on the lessee's balance sheet.