The Distribution of Income Primarily Determines Which of the Fundamental

question 99

Multiple Choice

The distribution of income primarily determines which of the fundamental economic questions?

• A)What goods and services are to be produced?
• B)How the goods and services are to be produced?
• C)Who will receive the goods and services produced?
• D)How to plan the economy?

---

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, also known as net earnings or net profit.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, based on physical inventory counts.

Merchandise Inventory

Items that a company intends to sell to customers that are held as assets on the balance sheet.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.