A Transaction in Which an Owner Transfers His or Her

question 57

Multiple Choice

A transaction in which an owner transfers his or her personal property to another to be held, stored, or delivered or for some other purpose is known as a(n) ________.

• A) arraignment
• B) easement
• C) bailment
• D) accession

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Definitions:

Diminishing Returns

The principle that says as more of a variable input is added to a fixed input, the incremental gain in output will eventually decrease.

Normal Profits

The level of profit that is necessary to cover the costs of a firm, including the opportunity costs of capital, ensuring the firm remains in business.

Implicit Cost

The opportunity cost equal to what a firm must give up in order to use resources it already owns, without paying rent or purchasing them.

Economic Profits

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs.