-Under Which of the Following Sets of Circumstances Is It

question 41

Multiple Choice

-Under which of the following sets of circumstances is it DEFINITELY the case that the average product increases as more labour is hired?

• A) The marginal product is equal to the average product.
• B) The marginal product is less than the average product.
• C) The marginal product is positive.
• D) Total product increases as more labour is hired.
• E) The marginal product is greater than the average product.

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent equity account, thereby preparing the books for the next period.

Correct Closing Entry

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts, thus preparing the books for the next period.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Inventory of Supplies

The total value of supplies held by a company that are yet to be used in production or sold.