Which of the Following Combinations Results in a Net Loss

question 78

Multiple Choice

Which of the following combinations results in a net loss reported on the income statement?

• A)Total revenues of $80,000 and total expenses of $74,000.
• B)Total revenues of $70,000 and total expenses of $74,000.
• C)Total revenues of $60,000 and total expenses of $52,000.
• D)Total revenues of $20,000 and total expenses of $16,000.
• E)Total revenues of $40,000 and total expenses of $31,000.

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Definitions:

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another more or less expensive one.

Firms

Business organizations that produce goods or offer services, typically with the aim of generating profit.

Resources

Inputs or factors that are used in the production of goods and services, such as land, labor, capital, and entrepreneurship.

Demand for Carpenters

The market need or desire for carpentry skills and services.