FIGURE 23-3 Refer to Figure 23-3

question 94

Multiple Choice

FIGURE 23-3 Refer to Figure 23-3.Which of the following statements best describes the supply side of Economy A in its current equilibrium position?

• A)Unit costs are rising,but firms can produce more output by employing standby capacity and overtime labour,for example,with no increase in the price level.
• B)Firms are producing well below their capacity and are willing to produce more only if prices rise.
• C)Unit costs are rising rapidly as firms are producing beyond their capacity.Firms will produce more only if prices increase.
• D)Firms are producing well below their capacity and are willing to produce more output with no increase in price.
• E)Unit costs are rising,but firms are able to produce more output with no increase in the price level because there is excess capacity in the economy.

Apply various tools for comparing financial data and measuring organizational performance.

Distinguish between different types of benchmarking and their purposes.

Explain the significance of accountability and transparency in nonprofit organizations.

Understand methods for program evaluation and measuring social return on investment.

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Definitions:

Ordinary Simple Interest

Interest calculation method using a fixed annual rate, based on the principal amount and the time invested or borrowed.

360-Day Year

A simplified accounting method where the year is assumed to have only 360 days for the purpose of interest calculations.

Exact Interest

Interest calculation method based on a 365-day year or actual number of days in a loan period.

365-Day Year

A method of computing interest where the basis for the calculation is a full 365-day year, used to give a more precise daily rate.