Which of the Following Activities Is Not Part of the Expenditure

question 37

Multiple Choice

Which of the following activities is not part of the expenditure cycle?

• A)Purchasing
• B)Updating the accounts payable
• C)Authorising payment
• D)Producing goods

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Definitions:

Income Elasticity

A measure of how the quantity demanded of a good or service changes in response to a change in consumer income.

Inferior Good

A type of good for which demand decreases when consumers' income increases, opposite to normal goods.

Perfectly Inelastic

Describes a situation where the demand for a good does not change in response to a change in price.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, defined as the percentage change in quantity demanded divided by the percentage change in price.