The Branch of Economics Which Studies How Households and Firms

question 176

Multiple Choice

The branch of economics which studies how households and firms make choices,interact in markets,and how government attempts to influence their choices is called

• A)macroeconomics.
• B)microeconomics.
• C)positive economics.
• D)normative economics.

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Definitions:

Accumulated Depreciation Account

A balance sheet item representing the cumulative amount of depreciation expense charged against an asset over its useful life.

Book Value

Refers to the net value of an asset as recorded on the balance sheet, calculated as the original cost minus accumulated depreciation and impairment.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the company.

Liabilities

Financial obligations or debts owed by a business to external parties or individuals.