What is Economics?

1. Read the following case and answer the question at the end of it: Enron used to be "America's Most Innovative Company." However, Enron, as America's seventh largest company, was involved in the financial scandal in late 2001. Economists believe that "transparency" is critical to an efficient and healthy market. As a business partner of Enron, the Arthur Andersen accounting firm didn't disclose the accounting fraud. Why didn't the Arthur Andersen accounting firm uncover the fraud in the case of Enron?

Answer rating: 100% (QA)

1Economics is the study of how societies use scarce resources ... View the full answer