It Takes a Considerable Amount of Time to Increase the Production

question 113

Multiple Choice

It takes a considerable amount of time to increase the production of pork. This implies that

• A)a change in the demand for pork will not affect its price in the short run.
• B)the short-run supply curve for pork is less elastic than the long-run supply curve for pork.
• C)an increase in the demand for pork will elicit a larger supply response in the short run than in the long run.
• D)the long-run supply curve for pork is less elastic than the short-run supply curve for pork.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Permanent Accounts

Accounts that carry their balances over into the next accounting period, including assets, liabilities, and equity accounts.

Trial Balance

A financial worksheet that consolidates all ledger balances into equal debit and credit column totals.

Prepaid Items

This term describes expenses paid in advance for goods or services to be received in the future, such as insurance or rent.