An Event That Allows the Economy to Operate More Efficiently

question 87

Multiple Choice

An event that allows the economy to operate more efficiently by producing more outputs without using any more inputs is referred to as

• A) absolute progress.
• B) efficiency progress.
• C) capital investment.
• D) technological progress.

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Definitions:

FIFO Method

First In, First Out, an inventory valuation method that assumes that the first items placed into inventory are the first sold.

Ending Inventory

The total value of goods that remain unsold at the end of the accounting period.

Holding Gains

Profits resulting from the increase in value of an asset held over time, not realized until the asset is sold.

Merchandise Inventory

Merchandise Inventory consists of products that a company buys to resell at a profit. It is often one of the largest current assets for businesses that sell physical goods.