If the Price of a Good or Service Rises, Households

question 281

Multiple Choice

If the price of a good or service rises, households have to choose whether to buy less of that good or service or spend less on other goods and services.When doctors and/or nurses demand pay increases, provincial governments

• A)cut back on their total spending on health care.
• B)increase spending on other programs.
• C)automatically increase sales taxes to pay for the increased spending on health care professionals.
• D)must either cut back on other programs, hire fewer doctors and/or nurses, or increase taxation.

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Definitions:

Operations Efficiency

A measure of how well a company uses its resources to produce output effectively.

Cash Control

Methods and procedures that a company uses to monitor, manage, and protect its cash transactions and balances.

Large Companies

Businesses characterized by significant revenue, extensive operational scales, or substantial numbers of employees, often having considerable influence in their respective markets.

Internal Control

A system of policies and procedures implemented by a firm to safeguard its assets, ensure financial reporting accuracy, promote operational efficiency, and encourage adherence to prescribed managerial policies.