Which of the Following Statements Is True

question 183

Multiple Choice

Which of the following statements is true?

• A)The motivation for rent seeking is not the same as the motivation for profit seeking.
• B)Economic rent is a payment in excess of opportunity cost.
• C)The deadweight loss triangle is not considered the graphic representation of one of the costs of monopoly; instead, it is one of the costs of not having a monopoly.
• D)Rent seeking is almost always an irrational activity as far as the rent seekers are concerned.
• E)a and d

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the check issuer's accounting records but have not been cashed or cleared by the bank.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditures to the appropriate period.

NSF Check

A cheque that cannot be processed because the writer's account lacks sufficient funds, standing for "Non-Sufficient Funds."

Debit Memorandum

A document or entry that records an adjustment or reduction in expenses payable to a vendor or an increase in inventory cost.