If Two Inputs Can Be Substituted for Each Other at a Fixed

question 49

Multiple Choice

If two inputs can be substituted for each other at a fixed rate then:

• A) the inputs are perfect substitutes.
• B) the inputs are imperfect substitutes.
• C) the inputs are not substitutable.
• D) the amount of each input is the same along an isoquant.
• E) none of the above.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts, thereby preparing the company's books for the next period.

Net Income

The net income of a business once all costs, taxes, and deductions are taken from the overall revenue.

Double Rule

A method used in accounting to underline totals for certain accounts or figures, indicating a sum or conclusion.

Closing Process

The series of steps performed at the end of an accounting period to prepare the books for the next period, including updating accounts and transferring balances.