To Make Things Simpler and Focus Attention on What Really

question 55

Multiple Choice

To make things simpler and focus attention on what really matters, economists would

• A) use assumptions.
• B) ignore all variables.
• C) think at the margin.
• D) respond to incentives.

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Definitions:

Average Amount

The average amount refers to the arithmetic mean of a set of numbers or quantities, obtained by summing them together and then dividing by the count of these numbers.

Amortization Period

The duration of time over which the cost of an intangible asset is incrementally expensed or amortized to a company's financial statements.

Net Cash Inflows

The total amount of money received minus the total amount of money spent over a specific period of time.

Initial Cost

The purchase price of an asset plus all costs to obtain and ready it for use.