Prices Serve the Public Interest by

question 247

Multiple Choice

Prices serve the public interest by

• A)making resource owners wealthy.
• B)rationing scarce resources.
• C)keeping poor people from purchasing more than they can afford.
• D)forcing the government to participate in the market.

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Definitions:

Dividends Payable

liabilities representing the amount of dividends declared by a company's board but not yet paid to shareholders.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions happen.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, rather than when earned or incurred.