The Most Important Economic Concept to Consider When Deciding Whether

question 133

Multiple Choice

The most important economic concept to consider when deciding whether to produce a product domestically or import the product is

• A)law of supply
• B)law of demand
• C)opportunity cost
• D)law of increasing cost

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Definitions:

Accumulated Amortization

The cumulative amount of amortization expense that has been recorded against an intangible asset.

Depletion

The allocation of the cost of a natural resource to expense in a rational and systematic manner over the resource’s useful life.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, water, and fertile land.

Market Value

The market value at which a service or asset is currently available for purchase or sale.