The Economy Tends to Approach a Steady State Because

question 69

Multiple Choice

The economy tends to approach a steady state because

• A) there is a shortage of skilled workers.
• B) people run out of new ideas.
• C) there are diminishing returns.
• D) government policies inhibit further growth.
• E) there is depreciation.

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Definitions:

Gross Profit

A company's revenue minus its cost of goods sold, indicating the efficiency of a company in managing its production and labor costs.

Net Income

A company's total earnings or profit, calculated by subtracting total expenses from total revenues.

Income Before Income Taxes

This is the earnings of a company before accounting for income taxes, representing the amount made from ordinary operations.

Net Income

The total profit of a company after all expenses, taxes, and losses have been subtracted from total revenue.