From society's point of view,the economic function of profits is to:
A) equalize incomes.
B) ensure that the rich get richer.
C) provide revenues to pay high wages.
D) direct resources in response to changes in the economy.

Question

Quizplus · Accepted Answer

Profits ensure that resources are directed to where they are most needed in the economy. When businesses make a profit, they are indicating that their goods or services are in demand, and they need more resources to produce more. Therefore, profits act as signals to direct resources towards more profitable areas and away from less profitable areas. This helps to ensure efficiency in the economy and promote growth.

From Society's Point of View,the Economic Function of Profits Is