When Misallocation of Resources for Production of a Good Results

question 146

Multiple Choice

When misallocation of resources for production of a good results in spillover effects on third parties, there is a

• A) market failure.
• B) government failure.
• C) legislative failure.
• D) productive failure.

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Definitions:

Salaries Payable

A current liability account that records the amounts owed to employees for services rendered but not yet paid.

Salaries Expense

The expense reported on the income statement representing the total amount paid to employees for services rendered during a specific period.

Payroll Register

A record that summarizes wages, deductions, and net pay for all employees for each pay period.

Payroll Taxes

Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.