Which of the Following Is a Microeconomic Issue

question 141

Multiple Choice

Which of the following is a microeconomic issue?

• A) Growth in the U.S. economy slowed.
• B) Increased federal government expenditures have lowered the unemployment rate.
• C) The inflation rate fell this year.
• D) The quantity of wheat grown in the United States increases this year.
• E) The U.S. government cuts taxes to combat a recession.

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Definitions:

Closing Entry

A journal entry made at the end of an accounting period to transfer temporary accounts to permanent accounts and prepare the books for the next period.

Real Account

Another term for permanent account in accounting, referring to accounts that are not closed at the end of the accounting period and carry their ending balance into the next period.

Nominal Account

A nominal account is a temporary financial account that shows the incomes, gains, expenses, or losses over an accounting period, and is reset to zero at the beginning of each new period.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.