For Firms or Individual Households in the Simple Macro Model,which

question 68

Multiple Choice

For firms or individual households in the simple macro model,which of the following statements is correct? Desired expenditure is

• A)always greater than planned expenditure.
• B)always greater than actual expenditure.
• C)not relevant because human wants are unlimited.
• D)what they plan on spending,given the resources at their command.
• E)not a useful concept because it cannot be measured.

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Definitions:

Straight-Line Method

A technique for computing depreciation or amortization by uniformly distributing an asset's cost throughout its expected lifespan.

Initial Value Method

An accounting technique where investments are recorded at their acquisition cost, without subsequent adjustments for market fluctuations.

Consolidation Entry *G

An alternative expression for consolidation entry G, focusing on eliminating intercompany transactions and balances when preparing consolidated financial statements.

Selling Price

The amount of money a seller is willing to accept in exchange for a good or service.