Differences in Income Are Most Directly Related to Which of the Following

question 320

Multiple Choice

Differences in income are most directly related to which of the following economic question?

• A) What goods and services are produced?
• B) In what quantities are various goods and services produced?
• C) How are goods and services produced?
• D) Who consumes the goods and services that are produced?

---

Definitions:

Equity Ownership

Equity ownership denotes the holding of shares in a company, thereby providing the shareholder a claim on a portion of the corporation's assets and earnings.

Corporate Takeover

The acquisition of one company by another, through either direct purchase or by acquiring a majority stake in the target company’s equity.

P/E Ratio

The price-to-earnings ratio, a measure of a company's current share price relative to its per-share earnings.

Debt-equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its shareholder equity, indicating how much debt is used to finance assets.