Company X Sells Widgets

question 277

Multiple Choice

Company X sells widgets.The following information summarizes the company's operating activities for the year:

What is gross profit?

• A)$15,500
• B)$21,000
• C)$19,000
• D)$12,500

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Definitions:

Classical Economists

Economists from the 18th and 19th centuries who focused on the ideas of free markets, the law of supply and demand, and the role of competition in regulating economic activity.

Investment

The allocation of resources, usually money, with the expectation of generating an income or profit.

Saving

The portion of income not spent on consumption or taxes, typically put aside for future use or investment.

Potential GDP

Potential GDP refers to the maximum output an economy can produce without triggering inflation, if all resources are fully employed.