Economic Theory Suggests That If Natural Resources Can Be Held

question 218

Multiple Choice

Economic theory suggests that if natural resources can be held as private property, then

• A) conservation will be nonexistent.
• B) owners will have an incentive not to abuse them.
• C) natural resources will be sold off for immediate use.
• D) people will simply hold them and refuse to make them available.

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Definitions:

FIFO Method

Accounting approach where the first goods purchased or produced are the first ones removed from inventory and reported as cost of goods sold.

Cost Reconciliation

The process of checking and ensuring that the accounting records regarding costs correspond with the actual expenses incurred.

Units Transferred

The quantity of items moved from one stage of production to another, or from the production department to finished goods inventory.

FIFO Method

An inventory valuation method where it is assumed that the first items placed in inventory are the first sold, standing for "First-In, First-Out."