Self-Interest

question 23

Multiple Choice

Self-interest

• A) implies that a person must try to increase wealth at all times.
• B) implies that people will not give away wealth.
• C) is consistent with many goals that people pursue, including betterment of others.
• D) applies only to people in market settings.

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Definitions:

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets.

Net Income

The profit a company makes post all deductions of expenses and taxes from its overall revenue.

Assets

Assets held by a company or person anticipated to yield benefits in the future.

U.S. Treasury Bonds

Long-term government securities issued by the U.S. Department of the Treasury with a fixed interest rate and maturity of more than 10 years.