The Problems Created by Scarcity

question 90

Multiple Choice

The problems created by scarcity:

• A) could be solved if more people worked overtime.
• B) are of no concern to the top income earners.
• C) concern individuals, but are not a concern on the macro level.
• D) apply to everyone because resources are limited in general.

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Definitions:

Impairment Loss

A recognized reduction in the recoverable amount of an asset, indicating that its market value has dropped below its book value on the balance sheet.

Double-Declining-Balance

A method of accelerated depreciation which doubles the regular depreciation amount.

Capitalize Development Costs

The accounting practice of adding the costs associated with developing a new product or service to the balance sheet as an asset, rather than expensing them.

Research Costs

Expenses related to the investigation and discovery of new knowledge that could be useful for the development of new products or services.