From Society's Point of View,the Economic Function of Profits Is

question 77

Multiple Choice

From society's point of view,the economic function of profits is to:

• A) equalize incomes.
• B) ensure that the rich get richer.
• C) provide revenues to pay high wages.
• D) direct resources in response to changes in the economy.

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Definitions:

Price

Exchange value of a good or service.

Leverage

The use of borrowed funds or other financial instruments to increase the potential return of an investment.

Potential Return

The expected gain or loss from an investment, taking into consideration both the risk and the expected rate of return.

Shareholders

Shareholders are individuals or entities that own shares of stock in a corporation, giving them partial ownership and possibly rights to dividends and a say in company matters.