Demands Differ from Wants Because

question 241

Multiple Choice

Demands differ from wants because

• A) demands reflect a decision about which wants to satisfy and a plan to buy the good, while wants are unlimited and involve no specific plan to acquire the good.
• B) wants require a plan to acquire a good but demands require no such plan.
• C) wants imply a decision about which demands to satisfy, while demands involve no specific plan to acquire the good.
• D) demands are unlimited, whereas wants are limited by income.

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Definitions:

Cash Flow

The total flows of capital into and out of a company, crucially determining its liquidity ratio.

Impairment Loss

A charge applied to a company's income statement when the fair value of an asset drops below its carrying value on the balance sheet.

Carrying Value

The recorded book value of an asset in a company's financial statements, calculated as the original cost minus accumulated depreciation or amortization.

Recoverable Amount

The estimated amount that can be recovered from an asset's sale or use, typically higher than its net book value.