In the First Month of Operations for Widget Industries, the Total

question 177

Multiple Choice

In the first month of operations for Widget Industries, the total of the debit entries to the cash account amounted to $8,000 ($4,000 investment by the owner and revenues of $4,000) . The total of the credit entries to the cash account amounted to $5,000 (purchase of equipment $2,000 and payment of expenses $3,000) . At the end of the month, the cash account has a(n)

• A) $2,000 credit balance.
• B) $2,000 debit balance.
• C) $3,000 debit balance.
• D) $3,000 credit balance.

Understand the structure and elements of the circular-flow diagram in economics.

Identify the role of households and firms in the circular-flow diagram.

Recognize the factors of production and their significance in the economy.

Comprehend the concept of the production possibilities frontier and its implications.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values from the mean.

ACT Type Score

A numerical measurement that represents a student's achievement on the ACT test, which is commonly used for college admissions in the United States.

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most occurrences take place around the average, and fewer instances occur as you move away from the center.

Standard Deviation

A measure of the dispersion or variability within a set of data points, indicating how much individual data points differ from the mean of the data set.