The Basic Goal of Economics Is

question 43

Multiple Choice

The basic goal of economics is:

• A) controlling the effects of government actions.
• B) determining how to distribute all that is produced in an economy.
• C) addressing the scarcity problem created because the population's desire for goods exceeds the ability to produce them.
• D) matching limited resources to people's limited wants and needs.
• E) controlling tastes and wishes so that there will be enough resources to produce all the goods and services that people want.

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Definitions:

Stockholders' Equity

The ownership share of shareholders in a corporation, calculated as the value of assets minus liabilities.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is retained by the company for reinvestment.

Assets

Economic resources owned by a business or company that are expected to provide future benefits or value.

Par Value

The nominal or stated value of a stock or bond, set by the issuing company and not necessarily indicative of the market value.