In a Free-Market System, Producers Will React to an Increase

question 109

Multiple Choice

In a free-market system, producers will react to an increase in demand when

• A)the price goes up.
• B)the government announces the increased demand.
• C)their costs increase.
• D)the free press publishes news of the increased demand.

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Definitions:

Recognise

The accounting process of officially recording an item or transaction in the financial statements.

Monthly Payment

The amount of money that is paid on a monthly basis for the use of a service or repayment of a loan.

IFRS Advisory Council

A group that provides the International Accounting Standards Board (IASB) with strategic advice on the setting and implementation of international financial reporting standards.

IFRS Foundation Trustees

The oversight body responsible for governance and oversight of the International Financial Reporting Standards Foundation.