In Economics, Choices Must Be Made Because We Live in a World

question 162

Multiple Choice

In economics, choices must be made because we live in a world of

• A)unemployment.
• B)scarcity.
• C)greed.
• D)unlimited resources.

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Definitions:

Accounts Payable

The amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Inventories

Inventories consist of raw materials, work-in-progress, and finished goods held by a company during the production and sales process, awaiting sale.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly involved in creating the product.

Cash Dividends

Payments made by a corporation to its shareholder members out of its earnings. It represents a share of corporate profits.