In Your Own Words, Explain the Steps Used to Create

question 65

Essay

In your own words, explain the steps used to create a REA model.

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Definitions:

Resource

An asset or input used to produce goods and services, such as labor, capital, land, and knowledge.

Nonrenewable Resource

A natural resource that cannot be readily replaced by natural means at a quick enough pace to keep up with consumption.

User Cost

The cost of using a good or service, including the opportunity cost of forgone alternatives and depreciation.

Extracting

The process of removing or obtaining a raw material from a mix, usually by physical, chemical, or mechanical means.