Listed Below Are 4 Terms Followed by a List of Phrases

question 17

Multiple Choice

Listed below are 4 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term.
-Fair value option

• A) Gain or loss reported in the statement of comprehensive income.
• B) Protects the debt issuer if rates fall.
• C) The amount by which the reacquisition price of debt exceeds book value.
• D) Right of an investor to purchase a specific number shares at a fixed price.

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Definitions:

Output Effect

The change in total revenue generated by selling an additional unit of a product or service.

Substitution Effect

The economic understanding that as prices rise or income decreases, consumers will replace more expensive items with cheaper alternatives.

Price of Capital

The cost of using capital assets, which can include interest rates on loans used to purchase the assets or opportunity costs of investing capital elsewhere.

Demand for Labor

The total amount of labor that employers want to hire at varying wage rates in a given time period.