Free Markets Produce Too Little Output When

question 58

Multiple Choice

Free markets produce too little output when

• A)negative externalities exist
• B)positive externalities exist
• C)production uses fixed-production technology
• D)production uses variable technology
• E)the resource is exhaustible

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Definitions:

Debit

A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet, or in the context of personal banking, a withdrawal from an account.

Credit

An accounting entry reflecting an increase in assets or decrease in liabilities on a company's balance sheet or an entry on the right side of an account.

Drawing

In accounting, refers to the withdrawal of cash or goods by the owner from a business for personal use.

Account Group

An account group is a categorization of individual financial accounts in the general ledger that helps organize and report financial information.