Land Improvements Should Be Depreciated Over the Useful Life of the

question 304

Multiple Choice

Land improvements should be depreciated over the useful life of the

• A) land.
• B) buildings on the land.
• C) land or land improvements whichever is longer.
• D) land improvements.

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Definitions:

Substitution Effect

The economic principle that as the price of a good or service rises, consumers will replace it with cheaper alternatives, affecting the demand for goods.

Normal Good

A Normal Good is a type of good for which demand increases as the income of consumers increases and decreases when consumer income decreases, all else being equal.

Indifference Curve

A curve showing the different combinations of two products that yield the same satisfaction or utility to a consumer.