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In What Sense Are Profit and Loss Signals

Question 81

Multiple Choice

In what sense are profit and loss signals?


A) They signal resources where to move, but give no indication of what consumers want to buy.
B) They signal resources where to move and signal what goods consumers may want to buy and what goods they may not want to buy.
C) They are important for government and business accounting procedures.
D) Profit and loss serve no purpose as signals.

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