Which of the Following Would Be Classified as an Operational

question 77

Multiple Choice

Which of the following would be classified as an operational (fixed) asset?

• A) A Ford Motor Company manufacturing plant used to manufacture the Focus line in Oakville, Ontario.
• B) Land purchased and held for sale by a realtor.
• C) Land purchased and held for development by Wal-Mart as a new store site.
• D) Land and buildings owned by Toys "R" Us that are store sites closed due to restructuring and consolidating operations.

Analyze the effectiveness of different government interventions (taxes, subsidies, regulations) in addressing externalities.

Understand and explain the concept of property rights and their implications for efficient market solutions.

Understand the definitions and differences between Pigovian taxes and command-and-control policies.

Recognize the concept of externalities and their impact on market efficiency.

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Definitions:

Gross Investment

The total amount spent on new capital assets before accounting for depreciation, representing investment in expanding productive capacity.

Depreciation

The process by which assets lose value over time due to wear and tear or obsolescence.

Savings

The portion of an individual's or entity's income that is not spent on current expenditures and is instead reserved for future use or investment.

Disposable Income

Money available to families for savings and expenses after accounting for income taxes.