The Depreciation Method That Computes Depreciation at an Accelerated Rate

question 5

Multiple Choice

The depreciation method that computes depreciation at an accelerated rate with depreciation being highest in the first period and decreasing in successive periods is ____.

• A) variable-declining balance
• B) fixed-declining balance
• C) sum of the years digits
• D) double-declining balance

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.

Dictator Game

A mutually anonymous behavioral economics game in which one person (“the dictator”) unilaterally determines how to split an amount of money with the second player.

Ultimatum Game

A behavioral economics game in which a mutually anonymous pair of players interact to determine how an amount of money is to be split. The first player suggests a division. The second player either accepts that proposal (in which case the split is made accordingly) or rejects it (in which case neither player gets anything).

Neoclassical Economics

A method in economics that concentrates on how supply and demand determine the distribution of goods, outputs, and incomes within various markets.