Which of These Is Generally an Example of an Extraordinary

question 7

Multiple Choice

Which of these is generally an example of an extraordinary item?

• A) Loss incurred because of a strike by employees.
• B) Write-off of deferred marketing costs believed to have no future benefit.
• C) Gain resulting from the devaluation of the U.S. dollar.
• D) Gain resulting from the state exercising its right of eminent domain on a piece of land used as a parking lot.

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Definitions:

Product Differentiation

The process of distinguishing a product from others in the market to attract a specific target market.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Economic Profit

The variance between an enterprise's aggregate income and total outlays, taking into account both clear and assumed costs.

Short-Run Equilibrium

The state in a market where supply equals demand within a limited time frame, before any long-term adjustments take place.