The Realization Requirement Gives an Incentive to Own Assets That

question 78

True/False

The realization requirement gives an incentive to own assets that have increased in value and to sell assets whose value has decreased.

---

Definitions:

Marginal Product

The additional output resulting from the use of one more unit of a variable input, such as labor or capital.

Equilibrium Wage

The salary point at which labor supply aligns perfectly with labor demand.

Marginal Product

The additional output that is produced by employing one more unit of a factor of production, holding other factors constant.

Equilibrium Wage

The wage rate that balances the quantity of labor supplied and the quantity of labor demanded.