Which of the Following Gains Does Not Result Solely in an Ordinary

question 43

Multiple Choice

Which of the following gains does not result solely in an ordinary gain or loss?

• A)Sale of equipment held for less than a year.
• B)Sale of inventory.
• C)Sale of equipment where the gain realized exceeds the accumulated depreciation.
• D)Sale of equipment where the accumulated depreciation exceeds the gain realized.
• E)None of the choices are correct.

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Definitions:

Marginal Propensity

The additional amount that consumers are likely to spend out of an additional unit of income.

Consumption Function

A formula in economics that shows the link between overall consumption and the gross national income.

Price Level

An index that measures the average of prices for goods and services in an economy over a period of time.

Aggregate Expenditure Line

A graphical representation of the total planned spending in an economy at various levels of national income.