Which Statement Is NOT One of the Five Principles for Understanding

question 101

Multiple Choice

Which statement is NOT one of the five principles for understanding how individual choices interact?

• A)There are gains from trade.
• B)Markets move toward equilibrium.
• C)Resources should be used as efficiently as possible to achieve society's goals.
• D)Overall spending sometimes gets out of line with the economy's productive capability.

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Definitions:

Activity Base

A measure used as a foundation for allocating costs in activity-based costing, representing transactions or events that cause costs to be incurred.

Payroll Checks

Checks issued to employees as payment for their services, representing wages or salaries.

Activity Base

A measure or factor used as a basis for allocating costs in managerial accounting, often related to the volume of production activity or the level of service provided.

Service Department Expenses

Costs incurred by support departments within an organization, like HR and maintenance, which do not directly contribute to revenue but are necessary for operations.