The Following Table Shows the Costs and Benefit of Producing

question 50

Multiple Choice

The following table shows the costs and benefit of producing a commodity.Table 13.1

-One reason that some whales were hunted close to extinction is that no one can claim ownership of a whale until it is killed. If property rights to the whale population were established:

• A)then whales would surely be hunted to extinction.
• B)the owners would have the incentive to ensure a sustainable yield of whales, so the whale population could recover.
• C)no one would hunt whales.
• D)the price of whales would be kept artificially low so that trade in whales would become unprofitable.
• E)the whales would be hunted to extinction only when the price is high and it is profitable to trade in whales.

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Definitions:

Trial Balance

A trial balance is a bookkeeping report that lists the balances in each of an organization's general ledger accounts.

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary source for generating financial statements.

Entire Group

This term signifies the collective entirety of a set of items, individuals, or entities being considered as a whole.

Account

A record summarizing all transactions related to a particular item or person in financial accounting.