When Total Production Is Greater Than Total Expenditures,__________ Is Produced

question 127

Multiple Choice

When total production is greater than total expenditures,__________ is produced than households want to buy,which leads to __________ in inventory,which signals firms that they have __________,which causes firms to cut back production.

• A) less; decreases; underproduced
• B) less; increases; overproduced
• C) more; decreases; underproduced
• D) more; increases; overproduced

---

Definitions:

Debit Balance

An accounting term referring to the remaining balance in an account when total debits exceed total credits.

Issue Price

The price at which new shares are offered to the public by a corporation during its initial public offering or subsequent issuances.

Premium

The amount paid for an insurance policy, or the difference between the higher price paid for a bond above its face value.

Discount

A reduction applied to the regular price of goods or services, often to encourage sales.