College-Age Athletes Who Drop Out of College to Play Professional

question 96

Multiple Choice

College-age athletes who drop out of college to play professional sports

• A)are not rational decision makers.
• B)are well aware that their opportunity cost of attending college is very high.
• C)are concerned more about present circumstances than their future.
• D)underestimate the value of a college education.

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Definitions:

Double-Declining-Balance Method

A depreciation technique that accelerates the rate at which an asset loses value, doubling the rate of the straight-line depreciation method.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation to each year of the asset's useful life.

Depreciation

The planned distribution of the costs associated with a tangible asset over its usage period.

Units-of-Activity Method

A depreciation method that allocates a fixed asset's cost based on its usage, activities, or units of production, reflecting wear and tear more accurately.