Suppose There Is an Increase in the Cost of Resources

question 37

Multiple Choice

Suppose there is an increase in the cost of resources used in the production of good A. Then

• A)if the price of A rises, we know the demand for A is elastic.
• B)if the total revenue from sales of A rises, we know the demand for A is elastic.
• C)if the total revenue from sales of A falls, we know the demand for A is elastic.
• D)total revenue will increase because the price of A must rise.
• E)total revenue must fall because the quantity bought and sold of A must fall.

Understand the accounting cycle and the steps involved from journalizing transactions to preparing post-closing trial balance.

Distinguish between permanent (real) and temporary (nominal) accounts and their treatment in closing processes.

Grasp the concept of pro forma statements and their purpose in financial planning and analysis.

Accurately record and adjust prepaid expenses and unearned revenues in the accounting records.

---

Definitions:

Nuclear Family

A family unit consisting of two parents and their children, considered a traditional social unit.

Urbanization

The process by which cities grow and higher percentages of the population come to live in urban areas.

Polygamy

A marriage system in which an individual has more than one spouse simultaneously.

Spouse

A partner in a marital relationship, defined by a legal or customary bond.