Using Prices to Promote Efficiency in the Utilization of Bridges

question 171

Multiple Choice

Using prices to promote efficiency in the utilization of bridges,

• A)higher prices should be charged for the use of the most crowded bridges.
• B)lower prices should be charged for the use of the uncrowded bridges.
• C)traffic would be equalized among the bridges where space is a scarce resource.
• D)All of the responses are correct.

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Definitions:

Pension Asset

An asset on the balance sheet, representing the company's surplus or prepaid contributions in its pension fund.

Journal Entries

Journal entries are the formal accounting record of financial transactions in the order they occur in a company’s financial system.

Pension Expense

The annual cost recognized by an employer for the benefits earned by employees in the employer-sponsored pension plan during the year.

Deferred Gain

A gain resulting from a business transaction that is recognized in financial statements in a period subsequent to the transaction.