Refer to the Diagram Below

question 167

Multiple Choice

Refer to the diagram below.The concave shape of each production possibilities curve indicates that:

• A)resources are perfectly substitutable.
• B)wants are virtually unlimited.
• C)prices are constant.
• D)resources are not equally suited for alternative uses.

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Definitions:

Depreciated

A decrease in the value of an asset over time, often due to wear and tear or obsolescence, recognized in accounting to allocate the cost of an asset over its useful life.

Salvage Value

The estimated residual value of an asset after it has completed its useful life and cannot be used for production.

Operating Cash Flow

Refers to the cash generated from a company's normal business operations, indicating its ability to generate sufficient revenue to cover its operational costs and fund its operations.

CCA Class

A category within the Capital Cost Allowance system in Canada used to determine the depreciation rate for tax purposes on various types of assets.