Which of the Following Is Not a Reason People Choose

question 25

Multiple Choice

Which of the following is not a reason people choose to depend on others for goods and services?

• A)to improve their lives
• B)to allow them to enjoy a greater variety of goods and services
• C)to consume more of each good without working any more hours
• D)to allow people to produce outside their production possibilities frontiers

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Definitions:

Depreciation Expense

The allocated portion of the cost of a fixed asset expensed each year over its useful life, representing wear and tear or obsolescence.

Gain

The increase in the value of an asset or the positive difference between the selling price of an asset and its cost.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, recorded as assets on the balance sheet until they are consumed or used.

Accounts Receivable

The amount owed to a business by its customers for goods or services that have been delivered but not yet paid for.