The Scarcity of Physical Resources Is Far More Fundamental to the Study

question 43

True/False

The scarcity of physical resources is far more fundamental to the study of economics than the scarcity of funds.

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Definitions:

Patent

A legal document granted by the government giving an inventor exclusive rights to make, use, or sell an invention for a specified period of time.

Cash Flows

The total sum of cash and cash-equivalent assets moving in and out of a company.

Income Tax Payable

The amount of income tax a company owes to the government but has not yet paid.

Direct Method

A way to prepare the cash flow statement, where operating cash receipts and payments are listed directly to calculate net cash from operating activities.