If a Country's Economic Decisions Are Made by an Individual

question 163

Multiple Choice

If a country's economic decisions are made by an individual or small number of individuals, then it has a:

• A)centralized economy.
• B)free-market economy.
• C)capitalist economy.
• D)open economy.

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Definitions:

Depreciation Expense

An accounting method used to allocate the cost of a tangible or physical asset over its useful life.

Operating Activities

The primary revenue-generating activities of a business, including the production, sales, and delivery of the company's products and services.

Investing Activities

Part of a company's cash flow statement that shows the cash spent on investments in capital assets and any cash received from the sale of those assets.

Equipment Account

A ledger account that tracks the purchase price, depreciation, and disposal of tangible assets such as machinery and equipment used in business operations.