Economics Is Best Defined as the Study of

question 19

Multiple Choice

Economics is best defined as the study of

• A) prices and quantities.
• B) inflation and interest rates.
• C) how people make choices under the conditions of scarcity,and the results of the choices.
• D) how to make money.
• E) wages and incomes.

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Definitions:

Merchandising Firm

A business that purchases finished goods for resale, making profit through the markup of those goods.

Period Costs

Costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued.

Inventory Accounts

Accounts used to track the cost of inventory that has been purchased but not yet sold to customers.

Manufacturing Company

A business that produces finished goods from raw materials by using various forms of labor, equipment, and processes.