Marietjie Maintains That She Can Predict When the Economy Is

question 7

Multiple Choice

Marietjie maintains that she can predict when the economy is going to move up or down in a business cycle.In fact,

• A)most economists can predict the business cycle.
• B)the business cycle is quite regular, with a new phase beginning every 24 months.
• C)business cycles are irregular and unpredictable in the short run.
• D)only the World Bank can predict moves in the business cycle.

---

Definitions:

Residual Value

The estimated value an asset will have at the end of its useful life, after depreciation has been fully taken.

Estimated Useful Life

The expected period over which an asset is likely to be functional and contribute to the production of the entity that owns it.

Trade-in Allowance

The credit value offered by a retailer to a customer towards the purchase of a new item when exchanging an older model or item.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total value of assets.