Economists Consider Profit to Be

question 250

Multiple Choice

Economists consider profit to be

• A) a cost of producing goods and services.
• B) the same as a salary.
• C) a reward for incurring losses.
• D) something that should be eliminated by antitrust laws.

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Definitions:

Collection Float

The delay between when a check is deposited into a bank account and when the funds are available to the depositor, affecting cash flow.

Cheques

Cheques are financial instruments that order a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued.

Deposit

Money placed in a financial institution for safekeeping, which can earn interest and is often used to secure transactions.

Balance

The total amount of funds in an account or the difference between the total debits and credits in an account.