Which of the Following Statements Is Correct

question 166

Multiple Choice

Which of the following statements is correct?
I. A drop in the foreign exchange value of the dollar would decrease aggregate demand
II. A decrease in the amount of money in circulation would increase aggregate demand

• A)I only
• B)II only
• C)Both I and II
• D)Neither I nor II

Distinguish between capital (long-term) and revenue (short-term) expenditures.

Calculate depreciation using different methods, including straight-line, units-of-production, and declining-balance.

Identify the differences between depreciation, amortization, and depletion.

Understand the financial impact of disposing of assets, including recognizing gains or losses.

---

Definitions:

Monopolistically Competitive Industry

A commercial setup in which various enterprises market goods that are comparable, though not identical, granting them a measure of control within the marketplace.

Elasticity Of Demand

An indicator of the level of change in consumer demand for a product based on fluctuations in its price.

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market; it occurs when total revenues are equal to total costs, including opportunity costs.

Monopolistically Competitive Firm

A company operating in a market structure characterized by many firms selling products that are substitutes but different enough that each has a degree of market power.