Which of the Following Is a Microeconomic Topic

question 80

Multiple Choice

Which of the following is a microeconomic topic?
i. K-Mart's decision to close stores that are not making a profit.
ii. Bunning's choice to hire more full-time employees because its sales increased.
iii. Virgin Airlines changes its fares.

• A) i only
• B) i and iii
• C) ii and iii
• D) i, ii, and iii
• E) i and ii only

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Definitions:

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions happen.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, rather than when earned or incurred.

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for the effects of transactions that do not involve cash.

Exchange

is a marketplace where securities, commodities, derivatives, or other financial instruments are traded.