Which of the Following Demonstrates One of the Three Principles

question 158

Multiple Choice

Which of the following demonstrates one of the three principles of economy-wide interactions?

• A)A student chooses to rent a movie with friends rather than study for an economics quiz.
• B)Your roommate offers to pay for the movie tickets if you drive to the theater.
• C)A city builds a new public park on the grounds of an abandoned warehouse.
• D)In 2008, fearing a recession, Congress approved a White House proposal to rebate some taxes for 2007.

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Definitions:

Fixed Asset

A durable, physical asset that a company possesses and utilizes in its activities to produce revenue over an extended period.

Net Cash Flow

The difference between cash inflows and outflows within a specified period, indicating the company's liquidity.

Net Income

The net income of a company following the deduction of all taxes and expenses from the gross revenue.

Cash Payback Period

The period of time required for the return on an investment to "pay back" the sum of the original investment.