2nd Auditing Test
The objective of the ordinary audit of financial statements is the expression of an opinion on:
the accuracy of the financial statements.
the accuracy of the annual report.
the fairness of the financial
BIS 2B : Ecology and Evolution
What is ecology?
What is evolution?
Why should we study them together?
The study of the interactions among organisms and their
The fundamental goal is
MARKETS IN ACTION
After studying this chapter, you will able to
Explain how housing markets work and how price
ceilings create housing shortages and inefficiency
Explain how labor markets work and how minimum
wage laws create unempl
OUTPUT AND COSTS
Decision Time Frames
The firm makes many decisions to achieve its main
objective: profit maximization.
All decisions can be placed in two time frames:
The short run
The long run
Decision Time Frames
The Short Run
The short ru
Perfect competition is an industry in which:
Many firms sell identical products to many buyers.
There are no restrictions to entry into the industry.
Established firms have no advantages over new ones.
How Monopoly Arises
A monopoly has two key features:
No close substitutes
Barriers to entry
Legal or natural constraints that protect a firm from
potential competitors are called barriers to entry.
A large number of firms.
Small market share and limited pricing power.
Each firm produces a differentiated product.
Sensitive to the average market price
Externalities in Our Lives
An externality is an unintended cost or benefit of an
activity that affects a third party
Positive Externality: A benefit of an activity received by
people other than those who pursue the activity (pro
PUBLIC GOODS AND
Classifying Goods and Resources
A good, service, or resource is excludable if it is
possible to prevent a person from enjoying its benefits.
A good, service, or resource is nonexcludabl
Efficiency and the Social Interest
Allocative efficiency is one aspect of the social interest
and the aspect about which economists have most to say.
An efficient allocation of resources occurs when we
produce the goods a