Economists Usually Assume That Households and Firms, Respectively, Maximize

question 4

Multiple Choice

Economists usually assume that households and firms, respectively, maximize

• A)wages and revenues.
• B)expenditures and profits.
• C)income and sales.
• D)savings and profits.
• E)utility and profits.

---

Definitions:

Invoice Price

The amount charged by a seller for goods or services, exclusive of any discounts or allowances.

Journal Entries

The written records of financial transactions in the accounting system, indicating the accounts and amounts debited and credited.

Journal Entries

Journal entries are the initial records of financial transactions in the accounting system, documenting the details of each transaction in chronological order.

Bank Reconciliation

The procedure of ensuring the balances of a cash account in a firm's accounting books match the corresponding figures on a bank statement.