In the Allocation of Resources Between Present and Future

question 152

Multiple Choice

In the allocation of resources between present and future,

• A)the market works imperfectly.
• B)the market works perfectly.
• C)centrally planned economies are more efficient than market economies.
• D)the invisible hand guarantees efficiency in market economies.

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Definitions:

Decrease Cash

Decrease cash refers to a reduction in the amount of money and cash equivalents available in a company, which can result from paying expenses, purchasing assets, or distributing dividends.

Inventory Method

An accounting approach used to value and manage the inventory a business holds, affecting cost of goods sold and ending inventory.

Accounts Payable Turnover Ratio

A financial efficiency ratio that measures how many times a company pays off its suppliers during a specific period.

Interest Expense

The cost incurred by an entity for borrowed funds, shown as an expense on the income statement.