Using a Capital-Intensive Technology Refers to Using Less Equipment Than

question 56

True/False

Using a capital-intensive technology refers to using less equipment than labor in the production process.

Recognize the accounting treatment for losses during liquidation.

Analyze the capital accounts before and after the liquidation process.

Understand the process of recording the sale of assets during liquidation.

Apply the concept of gain or loss on realization in the context of liquidation.

---

Definitions:

Economic Resource

Assets or inputs used in the production of goods and services, including natural resources, human resources, capital, and entrepreneurship.

Aggregate Economic Rent

The total earnings that factors of production receive over and above their opportunity cost, representing the extra income derived from resource ownership.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change on an outcome.

Surplus Payments

Payments made above the market price, often by a government to producers, to encourage production or as a form of subsidy.