Let's Check on Whether You Are Rationally Ignorant

question 157

Multiple Choice

Let's check on whether you are rationally ignorant. Which of the following four items is the smallest in terms of government expenditure?

• A) Social Security
• B) welfare
• C) foreign aid
• D) health care

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Definitions:

Loss on Disposal

A financial loss that occurs when an asset is sold for less than its carrying amount on the books.

Gain on Disposal

The profit earned from selling a capital asset for more than its book value.

Straight-line Method

A method of calculating depreciation of an asset, dividing the difference between its cost and salvage value by the total number of years it is expected to be in use.

Salvage Value

The expected financial return on an asset at the time of its disposal after its serviceable life has concluded.