If Occupational Safety Laws Were Changed So That Firms No

question 209

Multiple Choice

If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect

• A) the demand for the products of this industry to increase.
• B) the market price of the products of this industry to decrease in the short run but not in the long run.
• C) the firms in the industry to make long-run economic profit.
• D) competition to force producers to pass the lower production costs on to consumers in the long run.

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Definitions:

Sales Journal

A financial journal used to record the sales of goods or services on credit.

Customer Purchase

A transaction where a customer acquires goods or services from a business.

Credit Terms

The conditions under which credit is extended by a lender to a borrower, including the repayment schedule, interest rate, and due dates.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred, ensuring compliance with the matching principle.