Demands Differ from Wants Because

question 139

Multiple Choice

Demands differ from wants because

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

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Definitions:

Straight-line

A method of calculating depreciation of an asset where the expense is evenly distributed over its useful life.

Effective-interest

A method of calculating the interest rate on a loan or financial product that takes into account compound interest and fees, providing a true annual rate.

Amortization

The method of distributing the expense of a non-physical asset across its lifespan.

Market Rate

The prevailing rate of interest available in the marketplace for securities or loans.