Use the Following to Answer Questions

question 208

Multiple Choice

Use the following to answer questions:
Figure: Wage Subsidy
-(Figure: Wage Subsidy) Consider the use of wage subsidies versus the minimum wage. Employment with a wage subsidy is: ________, versus employment with an $8 minimum wage is: ________.

• A) 180; 120
• B) 120; 180
• C) 150; 150
• D) 180; 180

Understand the concepts and accounting treatments for investments in available-for-sale securities.

Recognize the reporting requirements for investments under the equity method.

Distinguish between different types of securities (trading, available-for-sale, held-to-maturity) and their accounting implications.

Calculate and report unrealized gains and losses on investments.

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Definitions:

Diminishing Marginal Utility

The principle that as a consumer consumes more of a good or service, the additional satisfaction gained from consuming an additional unit decreases.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to what is observed with normal goods.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction (utility) gained from consuming an additional unit decreases.

Total Satisfaction

The total amount of pleasure or utility that a consumer receives from consuming a certain quantity of goods or services.