Asked by Amber Lloyd on Jul 05, 2024

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From society's point of view, the economic function of profits and losses is to

A) promote the equal distribution of real assets and wealth.
B) achieve full employment and price level stability.
C) contribute to a more equal distribution of income.
D) reallocate resources from less-desired to more-desired uses.

Society's View

The collective opinions, attitudes, and values of a community or population towards various issues, concepts, or entities.

Economic Function

The role or impact that an entity or process has within the economy, such as production, distribution, and consumption of goods and services.

Profits and Losses

The financial gain or loss that a business experiences, calculated as the difference between revenue and expenses.

  • Understand the role of profits and losses in indicating the need for reallocating resources in the economy.
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NM
Nawid MajediJul 07, 2024
Final Answer :
D
Explanation :
Profits and losses serve as signals in a market economy, guiding resources towards industries or areas where they are most valued by consumers (indicated by profits) and away from areas where they are less valued (indicated by losses). This mechanism helps in the efficient allocation of resources, ensuring they are used where they generate the most value.