The Following Figure Shows the Total Output That an Economy

question 88

Multiple Choice

The following figure shows the total output that an economy can produce using varying amounts of capital.

-Refer to the figure above.The increase in output due to a one-unit increase in capital is the smallest at point ________.

• A) A
• B) B
• C) C
• D) D

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Definitions:

Depreciation Expense

The distribution of a physical asset's cost throughout its lifespan.

Double Declining-Balance Method

An accelerated depreciation method that uses up to twice the straight-line rate multiplied with the book value of asset to calculate depreciation expense. Residual value is not subtracted from the cost of an asset in this calculation.

Equipment Purchase

Equipment purchase involves acquiring physical assets, such as machinery or office equipment, that are used in the operations of a business.

Residual Value

Residual value is the estimated amount that an asset will be worth at the end of its useful life, after depreciation has been taken into account.