All of the Following Would Be a Result of Changing

question 111

Multiple Choice

All of the following would be a result of changing to the MACRS method of depreciation EXCEPT:

• A)higher depreciation expense.
• B)lower taxes in the early years of a project's life.
• C)lower taxable income in the early years of a project's life.
• D)All of the above.

---

Definitions:

Substitution Effect

The change in consumption patterns due to a shift in relative prices, leading consumers to replace more expensive items with cheaper alternatives.

Leisure

Free time spent away from business, work, and domestic chores, often used for relaxation, recreation, or hobbies.

Substitution Effect

The effect of a change in the price of a good or service on the demand for that good or service, due to consumers switching to or from substitutes.

Wages

The fixed regular payment, usually calculated on an hourly, daily, or weekly basis, paid by an employer to an employee for work performed.