Economists Suggest That a Market Can Fail If

question 154

Multiple Choice

Economists suggest that a market can fail if

• A)consumers have to pay more than they want to.
• B)no market for the product exists.
• C)producers get smaller profits than they desire.
• D)governments dictate prices.

Comprehend the purpose and procedure of closing entries in the accounting cycle.

Understand the treatment of withdrawals in relation to the capital account.

Analyze and correct errors arising from omitted closing entries.

Understand the mechanisms by which substances are transported across cell membranes.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment.

Brand Name

A unique design, sign, symbol, or words, or a combination of these, employed in creating an image that identifies a product and differentiates it from its competitors.

Parent-Company Extension Method

An accounting method used in consolidation that treats investments in subsidiaries as if they are direct extension of the parent company's operations, integrating their accounts directly.

Impairment Of Goodwill

An accounting charge that occurs when the book value of goodwill exceeds its recoverable amount.