At the End of the Year, an Individual, Small Business

question 118

Multiple Choice

At the end of the year, an individual, small business owner has made $65,000 in profit. Who does that profit belong to?

• A) The company's CEO and top managers
• B) The banks from which the business borrowed money
• C) All employees of the small business
• D) The consumers of the business' products
• E) The owner of the business

---

Definitions:

Government's Economic Activity

Refers to the various ways governments influence or directly participate in the national economy, including taxation, spending, and regulation.

Economic Efficiency

The optimal allocation of resources to maximize the production of goods and services. Efficiency is achieved when no additional output can be gained without increasing the amount of inputs.

Collective Action Problem

A situation where individuals in a group fail to achieve a common or collective goal because they prioritize their personal interests.

Logrolling Behavior

A practice in politics where individuals or parties exchange favors for mutual benefit, often seen in legislative voting processes.