The European Union and the Organization for Economic Cooperation and Development

question 30

Multiple Choice

The European Union and the Organization for Economic Cooperation and Development differ from each other in terms of their accounting harmonization efforts, because

• A) the OECD represents primarily developing countries, whereas the EU represents industrial countries.
• B) the EU has the force of law behind it, whereas the OECD can only recommend disclosure practices.
• C) the EU is involved only in measurement, whereas the OECD is only interested in disclosure.
• D) the OECD represents the profession, whereas the EU represents governments.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the true profitability of an enterprise.

Demand Schedule

A table that lists the quantity of a good that consumers are willing and able to purchase at various prices.

Marginal Revenue

The additional income earned by selling one more unit of a good or service.

Product Differentiation

The act of setting a product or service apart from others in order to increase its appeal to a designated target market.