A Business Makes a Cash Payment of $12,000 to a Creditor.Which

question 6

Multiple Choice

A business makes a cash payment of $12,000 to a creditor.Which account is credited?

• A) Cash
• B) Accounts payable
• C) Service revenue
• D) Accounts receivable

Understand the economic rationale for specialization and comparative advantage in producing goods and services.

Understand the concept of transaction costs and their impact on market exchanges.

Identify the role and functions of middlemen in reducing transaction costs and facilitating trades.

Define and calculate opportunity costs in various economic scenarios.

---

Definitions:

North American Empire

Generally refers to the territorial expansions and colonial pursuits of European powers and later the United States across the North American continent from the early modern period through the 19th century.

Liberty

The quality or state of being free; the power to do as one pleases, free from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Indians

Refers to the indigenous peoples of India or the Indigenous peoples of the Americas, depending on the context, known for their rich cultures, histories, and contributions to society.

Pueblo Revolt

A 1680 uprising of Pueblo Native Americans against Spanish colonization in the province of Santa Fe de Nuevo México, leading to the expulsion of the Spanish for 12 years.