Two Advisors to the President Have Given Their Policy Recommendations

question 131

Multiple Choice

Two advisors to the president have given their policy recommendations, and they are in disagreement.Why do these economists disagree?

• A)because they do not have all relevant information about the problem 
• B)because they disagree on the nature of some cause-effect relationship 
• C)because they have different values and opinions 
• D)All of the above are reasons for disagreements among economists.

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Definitions:

Internal Audit Staff

Employees of an organization who perform independent and objective evaluations of the effectiveness and compliance of the firm's operations, including the reliability of financial reporting.

Consignment

An arrangement where goods are left in the possession of another party to sell, but ownership and title remain with the supplier until the goods are sold.

Revenue Recognition

The accounting principle governing when revenue is considered earned and can be recorded in the financial statements.

Risk Of Ownership

The potential for loss resulting from owning an asset, including factors such as depreciation, obsolescence, and market volatility.