Suppose That the Decline in Prices of Personal Computers Has

question 26

Multiple Choice

Suppose that the decline in prices of personal computers has reduced the demand for labor at a particular firm.We may conclude that at this firm:

• A)computers and labor are pure complements
• B)computers and labor are gross complements but not pure complements
• C)computers and labor are gross substitutes
• D)computers and labor are perfect substitutes

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Definitions:

Unadjusted Trial Balance

A listing of all the accounts and their balances from a company's general ledger before any adjusting entries are made for accounting purposes.

Cash Account

A cash account is a brokerage account that requires the investor to pay the full amount for securities purchased and to receive full delivery of the securities sold.

Two-Column Journal

A fundamental accounting record with two columns used for debits and credits to record financial transactions.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account. It is positioned on the left side of an account ledger.