What Can Be Said About Economists in General

question 293

Multiple Choice

What can be said about economists in general?

• A) They do not try to explain people's tastes but do try to explain what happens when tastes change.
• B) They must be able to explain people's tastes to explain what happens when tastes change.
• C) They do not believe that people's tastes determine demand and therefore ignore the subject of tastes.
• D) They believe that tastes and demand move in opposite directions.

Recognize the effects of bad debt adjustments on financial statements.

Distinguish between the allowance method and the direct write-off method of accounting for uncollectible receivables.

Perform calculations to determine the net realizable value of receivables.

Know how to record the write-off of an uncollectible account under the allowance method.

---

Definitions:

Basic Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation and communication systems, power plants, and schools.

World Bank

An international finance institution that allocates loans and grants to governments of economically weaker countries for the execution of capital projects.

Industrially Advanced Nations

Countries that have highly developed industries, infrastructure, and higher levels of income for their citizens.

Aggregate Outputs

The total amount of goods and services produced in an economy over a specific time period.