Economists Use the Term "Business Cycle" to Refer To

question 64

Multiple Choice

Economists use the term "business cycle" to refer to:

• A)​the growth of small businesses into major corporations.
• B)​qualitative changes in products resulting from improved technology.
• C)​fluctuations in economic activity, measured by GDP or unemployment.
• D)​periods of increase or decrease in the rate of inflation.

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Definitions:

Inventory Inspection Costs

Expenses associated with verifying the quantity and quality of inventory on hand.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often equated to the book value of the company.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.

Overstatement

An error in financial reporting where the value of assets, revenues, or profits is recorded higher than the actual figures.