Which of the Following Could Be an Example of a Question

question 70

Multiple Choice

Which of the following could be an example of a question that would be studied in microeconomics?

• A) Why did our economic growth rate slow down during the 2000s?
• B) How did the recession end in 2009 if unemployment continued to rise?
• C) How will the legalization of marijuana in Colorado affect the market for cigarettes?
• D) When should Congress raise taxes in order to tackle the debt crisis?

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Definitions:

Accruals

Accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transaction happens.

Financing

The act of providing funds for business activities, making purchases, or investing, including means such as loans, equity investments, and other financial instruments.

Compensating Balance

A portion of a loan that banks require borrowers to leave in their checking accounts. Effectively increases the bank’s yield. A minimum balance required to compensate banks for their services.

Checking Account

A bank account that allows depositors to write checks against deposited funds, making it easy to access and manage money for daily transactions.