Which of the Following Is a Correct Statement

question 146

Multiple Choice

Which of the following is a correct statement?

• A) Economic concepts or laws that are valid during recessions are necessarily valid during prosperity.
• B) Although they are generalizations, economic laws are useful because they allow us to predict and therefore influence or adjust to events.
• C) Economists use the scientific method. Therefore, economic laws are as quantitatively precise as the laws of physics or chemistry.
• D) Because economics is primarily concerned with questions of "ought," it is a branch of applied ethics and not scientific.

---

Definitions:

Diluted Earnings Per Share

A performance metric that shows the quality of earnings per share if all convertible securities were converted into shares.

Potential Common Shares

Financial instruments or arrangements that could potentially be converted into common stock, impacting the earnings per share calculation.

Earnings Per Share Footnotes

Additional notes in financial reports that provide details on the calculation and factors affecting the earnings per share metric.

Accumulated Other Comprehensive Income

A component of shareholders' equity, representing income that is not part of net income, such as unrealized gains or losses on certain types of investments.