Related to the Economics in Practice on Page 151: Suppose

question 259

Multiple Choice

Related to the Economics in Practice on page 151: Suppose you own a truck and use it to deliver merchandise to retailers and hire a driver to make such deliveries. At higher rates of speed the truck gets fewer miles per gallon of gas. Holding all else constant, as the price of gasoline continues to rise

• A) you will instruct your driver to drive faster.
• B) you will instruct your driver to drive slower.
• C) you will ask your driver to change their driving in any way.
• D) you will make more deliveries to cover the increasing cost of fuel.

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Definitions:

Sales Revenue

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Credits

Accounting entries that increase liabilities or decrease assets, typically signaling the source of financing or revenue.

Single-Column Purchases Journal

An accounting journal used to record all purchase transactions of a business in a single column, typically for the purchase of inventory on credit.

Cash Payments Journal

A business ledger that documents every payment or cash disbursement made by a company.