In a Move to Free the Economy from Unnecessary Regulation

question 105

Multiple Choice

In a move to free the economy from unnecessary regulation, Congress passes legislation to remove sugar price supports.What would most likely happen to the number of producers of sugar?

• A)It would decrease, because sugar prices would fall.
• B)It would decrease, because sugar prices would rise.
• C)It would increase, because sugar prices would fall.
• D)It would increase, because sugar prices would rise.

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Definitions:

Account Category

A classification within accounting systems used to organize and report on financial transactions based on their nature.

Gross Sales

The total sales revenue of a company before any deductions for returns, allowances, or discounts.

Net Sales

The total revenue from sales after deducting returns, allowances for damaged or missing goods, and discounts.

Sales Discounts

Concessions granted by sellers to buyers as an incentive to encourage prompt payment, recorded as a deduction from revenue.