Economists Would Most Likely Suggest That Advanced Nations Can Best

question 141

Multiple Choice

Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by

• A) increasing the amount of military aid to strengthen the government's role in providing law and order.
• B) increasing trade barriers so that less-developed nations will become more self-sufficient.
• C) reducing trade barriers and increasing the amount of private and public capital.
• D) decreasing the amounts of private capital or foreign aid to reduce the level of neocolonialism.

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Definitions:

Double Diminishing-Balance

A method of accelerated depreciation which doubles the rate at which an asset's book value depreciates, leading to larger deductions in the early years of an asset's life.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Residual Value

Residual Value is the estimated amount that an asset will realize upon its sale at the end of its useful life.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life, providing a consistent annual depreciation expense.