In the National Income Accounts, Depreciation Is Called

question 180

Multiple Choice

In the national income accounts, depreciation is called

• A)"consumption of fixed capital."
• B)"negative investment."
• C)"diminished value."
• D)"loss due to wear."

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Definitions:

User Cost

The opportunity cost of using a good, service, or resource, including the cost of foregoing the next best alternative use.

Extraction Cost Curve

Illustrates the relationship between the quantity of a resource extracted and the cost of extraction, typically showing increasing costs as more of the resource is extracted.

Marginal Extraction Costs

The additional costs incurred for extracting one more unit of a resource, which may increase as the resource becomes scarcer.

Resource

Assets, materials, or substances that provide economic value or benefit to individuals or businesses.