Depreciation Is

question 49

Multiple Choice

Depreciation is

• A) the sum of gross and net investment.
• B) new additions to a firm's stock of intangible capital.
• C) the decline in the economic value of an asset over time.
• D) the decrease in the general price level.

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Definitions:

Comparative Advantage

An individual's, a business's, or a nation's potential to produce a service or good at an opportunity cost that is inferior to that of its competition.

Production Possibilities

Production possibilities refer to the different combinations of goods and services that an economy can produce given its available resources and technology.

Specialization

The process of focusing effort and resources on a limited number of activities to increase efficiency and productivity.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level, holding all other factors constant.