A Credit Is Used to Record an Increase in All

question 185

Multiple Choice

A credit is used to record an increase in all of the following accounts except:

• A)Accounts Payable
• B)Service Revenue
• C)Unearned Revenue
• D)Wages Expense
• E)Common Stock

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Definitions:

Substitution Effect

The economic understanding that as prices rise or incomes decrease, consumers replace more expensive items with less costly alternatives.

Output Effect

The change in total output resulting from a specific economic policy or condition, such as an increase in demand.

MRP

Marginal Revenue Product, the additional revenue generated by the employment of one additional unit of a factor of production.

MPP

Marginal Physical Product, the change in total output of a good that results from a one-unit change in input, holding all other inputs constant.