Scarcity

question 28

Multiple Choice

Scarcity

• A) is the inability to satisfy all our wants.
• B) leads to higher prices.
• C) applies only to people living in poverty.
• D) is not something that affects very rich people.
• E) used to exist everywhere but has been eliminated in advanced economies.

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Definitions:

Accumulated Depreciation

The cumulative value of depreciation expense assigned to a physical asset from the time it was first utilized.

Major Class of Asset

Represents categories of assets grouped based on their similar financial characteristics, such as cash, inventory, property, etc.

Sum-Of-The-Years'-Digits

A method of depreciation that accelerates the write-off of assets by applying a decreasing fraction to the depreciable amount each year.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation expense for an asset each year.