In Which of the Following Cases Can We Be Certain

question 108

Multiple Choice

In which of the following cases can we be certain that a natural resource has become scarcer?

• A)both the demand for the resource and the supply of the resource have increased.
• B)both the demand for the resource and the supply of the resource have decreased.
• C)the demand for the resource has increased and the supply has decreased.
• D)the demand for the resource has decreased and the supply has increased.

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Definitions:

Initial Value Method

An accounting method where investments are recorded at their cost at the time of acquisition without subsequent adjustment for changes in market value.

Consolidation Worksheet

A tool used in accounting to combine the financial statements of a parent company with its subsidiaries to prepare a consolidated statement.

Equity Method

An accounting technique used to record investments in other companies by recognizing the investor's share of the investee's profits or losses.

Common Stock

Type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends or stock appreciation.