Which of the Following Statements Is NOT an Assumption Underlying

question 299

Multiple Choice

Which of the following statements is NOT an assumption underlying the production possibilities curve?

• A) Resources are fully and efficiently employed.
• B) Technology is fixed.
• C) Production occurs over some specified time period.
• D) The amount of resources available for production can be changed quickly.

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Definitions:

Residual Value

The estimated value that an asset will have at the end of its useful life.

Depreciation Expense

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

Residual Value

The estimated salvage value of an asset at the end of its useful life.

Depreciable Cost

The original cost of an asset less its salvage value, representing the total amount that can be depreciated over its useful life.