The Price System Features

question 144

Multiple Choice

The price system features

• A) exchanges made in currency only.
• B) voluntary exchange that makes both the consumer and producer better off.
• C) exchanges made only on a barter basis.
• D) an exchange in which consumer is made better off and the producer is made worse off.

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Definitions:

Employee

An individual who works part-time or full-time under a contract of employment, contributing labor and expertise to an employer.

Employer

An individual or organization that hires and pays people to work.

Wages Expense

The total cost incurred by an organization to pay salaries and wages to its employees for a specific period.

Accrued Liability

A liability that has been incurred, is recognized on the balance sheet, and has not yet been paid.