The Process by Which a Stimulus Increases the Probability That

question 67

True/False

The process by which a stimulus increases the probability that a preceding behavior will be repeated is called reinforcement.

Discern the purpose and accounting treatments for purchasing debt or equity securities.

Identify accounting treatments at acquisition for different types of investments.

Distinguish between strategic and non-strategic investments, and their associated purposes.

Understand the accounting models applicable to equity and debt investments, including the fair value through profit and loss and the amortized cost model.

---

Definitions:

Price Level

The price level is an index that measures the average prices of goods and services across an economy, indicative of inflation or deflation.

Aggregate Demand Curve

A curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level.

Marginal Propensity

The additional amount that consumers are likely to spend out of an additional unit of income.

Consumption Function

A formula in economics that shows the link between overall consumption and the gross national income.