The Concept of Scarcity Indicates That

question 120

Multiple Choice

The concept of scarcity indicates that:

• A) most goods have no alternative uses.
• B) almost all goods have alternative uses.
• C) most decisions can be made without sacrificing alternatives.
• D) certain societies are able to overcome the constraints imposed by alternative uses of resources.

---

Definitions:

Gain on Revaluation

An increase in the value of an asset based on current market prices, resulting in a higher estimated worth than its recorded book value.

Estimated Useful Life

The length of time an asset is expected to be usable for its intended purpose, used to calculate depreciation.

Residual Value

The estimated amount that an asset will realize upon its disposal at the end of its useful life, less the cost of disposal, if any.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against an asset since it was acquired.