Assumptions Are Necessary to

question 109

Multiple Choice

Assumptions are necessary to

• A) make economics a social science.
• B) define a set of circumstances where a model is most likely to apply.
• C) define the relationship between wants and resources under all circumstances.
• D) define the specific cause and effect relationship that is being explained by social sciences.

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Definitions:

CCA Class

A classification within the Capital Cost Allowance system in Canada, grouping assets with similar properties for depreciation purposes.

Net Advantage To Leasing

The benefits a company realizes from leasing assets rather than purchasing them, considering cost savings, tax advantages, and flexibility.

Estimated Life

The expected duration or lifespan of an asset, affecting depreciation calculations and investment decisions.

CCA Class

Capital Cost Allowance Class; categories used in Canadian income tax that determine the depreciation rate for different types of assets for tax purposes.