In a Market System, as One Industry Expands While Another

question 134

Multiple Choice

In a market system, as one industry expands while another contracts, resources will flow

• A)away from the expanding industry toward the contracting one.
• B)across industries, driven by the changes in resource prices paid by firms.
• C)toward the industry where the product demand is declining.
• D)because resource allocation will have to equalize between the two industries.Difficulty: 02 Medium

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Definitions:

Residual Value

The salvage value of an asset after its period of use has ended, reflecting its remaining worth.

Depreciation Method

A methodical strategy for distributing the expense of a physical asset across its lifespan.

Straight-Line

A method of allocating an asset's cost evenly over its useful life for purposes of depreciation.

Contra Asset Account

An account on a balance sheet that reduces the value of an associated asset account, such as accumulated depreciation.