If Total Liabilities Increased by $25,000 During a Period of Time

question 253

Multiple Choice

If total liabilities increased by $25,000 during a period of time and stockholders' equity decreased by $9,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total assets is a(n)

• A) $34,000 decrease.
• B) $16,000 decrease.
• C) $16,000 increase.
• D) $34,000 increase.

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Definitions:

Economic Rent

The excess payment made to a factor of production over and above what would be needed to keep it in its current use.

Marginal Revenue Product

The additional revenue generated from employing one more unit of input, such as labor or capital.

Primary Labor Market

The segment of the labor market that consists of high-paying jobs with good benefits and job security, often requiring higher education or specialized skills.

Economic Rent

The excess payment for a factor of production over its opportunity cost, highlighting the benefits received from a unique advantage or situation.