Efficient Markets Are Considered Rationing Devices Because

question 35

Multiple Choice

Efficient markets are considered rationing devices because

• A)consumers how value the good or service the most will be the one who get it.
• B)suppliers can produce the good or service at the lowest cost ensuring a lower price.
• C)the equality of the market allows for all to benefit.
• D)of government decree.

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Definitions:

Ledger Accounts

A record within the general ledger that is used to collect and store balance and transaction information for individual items such as assets, liabilities, equity, revenues, and expenses.

Retained Earnings Account

An equity account that represents the accumulated portion of net income that a company has decided to keep and reinvest in the business rather than distribute to shareholders as dividends.

Permanent Account Balances

Permanent account balances are those balances in accounts that are carried over into the next accounting period, including assets, liabilities, and equity accounts.