You Explain to Your Friend Haslina,who Runs a Catering Service

question 193

Multiple Choice

You explain to your friend Haslina,who runs a catering service called "Meals in a Zip," about an economic theory which asserts that consumers will purchase less of a product at higher prices than they will at lower prices.She contends that the theory is incorrect because over the past two years she has raised the price of her catered meals and yet has seen a brisk increase in sales.How would you respond to Haslina?

• A)Haslina is right; she has evidence to back her claim.The theory must be erroneous.
• B)I will explain to her that she is making the error of reverse causality: it is the increase in demand that has enabled her to raise her prices.
• C)I will explain to her that there are some omitted variables that have contributed to an increase in her sales such as changes in income.
• D)Haslina is making the mistake of assuming that correlation implies causation.

Identify solid-state components and understand their role in electronic devices.

Grasp the basics of binary coding and its application in digital electronics.

Understand the basic functionality and components of a transistor.

Understand the amplification capacity of different transistors.

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Definitions:

Operating Activities

Transactions and events related to the primary operations of a business, including revenue and expense activities.

Accounts Receivable

Funds that clients or customers are required to pay to a business for products or services delivered on credit.

Sales Revenues

The income received by a company from its sales of goods or services before any expenses are subtracted.

Accounts Payable

An account representing short-term liabilities to suppliers or creditors for goods and services received but not yet paid for.