Economics Is Best Defined as the

question 51

Multiple Choice

Economics is best defined as the

• A)study of how people make choices to satisfy their wants.
• B)study of individual self-interests.
• C)study of how government can most efficiently raise funds by taxation.
• D)process by which goods are sold in free markets.

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT), representing the amount of profit realized from a business's operations.

Fixed Costs

Expenses that do not change with the level of output or production, such as rent, salaries, and insurance.

Variable Costs

Expenses that fluctuate based on the amount of products or services a company generates.

Break-even Sales

The amount of revenue that a business must generate to cover its fixed and variable costs before starting to realize a profit.