Lorenz Works for Vertigo Airlines

question 10

Multiple Choice

Lorenz works for Vertigo Airlines. During a break, Lorenz visits a Web site and downloads Whee!, gaming software that, unknown to Lorenz, allows someone else to access to Vertigo's computer network without its knowledge or consent. Whee! is

• A) a hacker.
• B) a Trojan horse.
• C) a virus.
• D) a worm.

Understand the concept and calculation of the cost of goods purchased.

Recognize the importance and computation of the cost of goods available for sale.

Identify different incentives for prompt payment by customers.

Calculate the effects of sales discounts on cash receipts.

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Definitions:

Normal Good

A good for which demand increases as consumer income rises, and decreases when consumer income falls, all other factors being constant.

Decrease in Income

A reduction in the amount of money received by an individual or entity, which can affect consumption and saving behaviors.

Downward-sloping Demand Curve

A graph showing that the quantity demanded of a good or service varies inversely with its price, other things being equal.

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.