When Laptops Were First Produced, the Price Was Very High

question 48

Multiple Choice

When laptops were first produced, the price was very high. As time passed, the price of personal laptops fell because

• A) the initial price was too high and nobody bought laptops.
• B) the demand for laptops decreased.
• C) there were technological advances in the production of laptops.
• D) people's incomes increased and laptops are an inferior good.
• E) None of the above answers is correct.

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Definitions:

Journal Entry

A record in the books of account that represents a financial transaction.

Payroll Taxes Expense

Taxes that employers are required to pay based on the wages and salaries of their employees, such as Social Security and Medicare taxes.

FICA Tax

A U.S. federal payroll tax used to fund Social Security and Medicare, distributed between employees and employers.

FUTA Tax

A United States federal tax levied on employers to fund state workforce agencies and unemployment benefits.