The Money Cost of a Particular Good Will Approximate Its

question 71

Multiple Choice

The money cost of a particular good will approximate its opportunity cost if

• A)there are serious distortions in the market.
• B)the market functions well.
• C)there is much specialization in the market.
• D)nations are exploiting the law of comparative advantage.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is significant but not controlling.

Stock Investments Account

An account used to record the purchases and sales of equity securities, such as shares of stock, that a company holds as investments.

Annually

Occurring once every year or relating to a period of one year.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies.