In a Free- Market Economy That Is Continually Adjusting Toward

question 9

Multiple Choice

In a free- market economy that is continually adjusting toward equilibrium,a primary force driving this adjustment is

• A)the pursuit of allocative efficiency.
• B)diminishing returns.
• C)the scarcity of resources.
• D)opportunity costs.
• E)the pursuit of profits.

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life, often considered for depreciation purposes.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.

Depletion Expense

The allocation of the cost of natural resources over their useful life, often used in industries like mining, quarrying, or oil extraction.

Mineral Rights

Legal entitlements that grant the holder the ability to mine, extract, or exploit minerals from the land.