A Military Draft The Following Questions Refer to the Accompanying Graph, Which Shows

question 46

Multiple Choice

A Military Draft

The following questions refer to the accompanying graph, which shows the supply and demand for military service where Q0 represents the quantity provided by a volunteer army and Qd the quantity provided by a draft.


-Refer to Supply and Demand.Deadweight loss

• A) is eliminated by a limited draft.
• B) occurs only with a volunteer army.
• C) occurs only with a draft.
• D) Occurs with both a volunteer army and with a draft.

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Definitions:

Costs Expire

This concept relates to the recognition of expenses in the income statement when the underlying value or utility of the cost is consumed or no longer exists.

Operating Cycle

The time period between purchasing raw materials and collecting cash from selling finished goods, measuring the efficiency of a company's operations and cash flow.

Extraordinary Item

Unusual and infrequent gains or losses on a company's financial statements, not expected to recur in the foreseeable future, a concept that has been phased out in many accounting standards.

Income Statement

A report detailing a business's income and outgoings within a set timeframe, culminating in a final profit or loss.