Which One of the Following Transactions Is an Investing Activity

question 70

Multiple Choice

Which one of the following transactions is an investing activity?

• A)Sale of equipment at book value
• B)Sale of merchandise on credit
• C)Declaration of cash dividend
• D)Issuance of bonds payable at a discount

Understand the reasons behind the downward slope of the aggregate demand curve.

Comprehend the relationship between savings, investment, and the interest rate.

Relate inflation, employment, and GDP to economic theories.

Describe the historical context and evolution of economic thought from classical to Keynesian perspectives.

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Definitions:

Flow Measure

A quantitative assessment that represents movement of items over time, often used in economics to track variables like income.

Consumption

The consumption of products and services by individuals in a household.

Impossibility Theorem

A proposition demonstrated by Kenneth Arrow showing that no system of aggregating individual preferences into social decisions will always yield consistent, nonarbitrary results.

Voting Paradox

A simple demonstration of how majority-rule voting can lead to seemingly contradictory and inconsistent results. A commonly cited illustration of the kind of inconsistency described in the impossibility theorem.