The Finite Nature of the Economy's Resource Base

question 58

Multiple Choice

The finite nature of the economy's resource base:

• A) will be solved if only we would learn to conserve.
• B) is only a problem in developing countries.
• C) will be solved as technology advances.
• D) will always be with us.

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Definitions:

Straight-Line Method

A process for figuring out depreciation or amortization by spreading the asset’s price evenly over its operational life.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decline in its value over time.

Gain or Loss

The financial result of selling an asset for more or less than its purchase price, respectively.

Fixed Asset Turnover

A financial ratio that measures a company's effectiveness in generating revenue from its fixed assets, such as property, plant, and equipment.