The Concept of Duality Means That a REA Diagram Must

question 42

Multiple Choice

The concept of duality means that a REA diagram must consist of:

• A) two events, one of them economic the other support
• B) two agents, one of them internal and the other external
• C) two resources, one increased and the other decreased by the same event
• D) none of the above

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Definitions:

Democratic Political Process

A system of government in which power is vested in the people, who rule either directly or through freely elected representatives.

Rent-Seeking Activity

Behavior by individuals or firms to increase their share of existing wealth without creating new wealth, often through lobbying for favorable regulations or policies.

Economic Efficiency

A state in which resources are allocated in the most beneficial way, maximizing the production of goods and services.

Government Program

Initiatives or plans implemented by the government to achieve specific social, economic, or political goals.