The Gain or Loss on the Disposal of a Machine

question 70

True/False

The gain or loss on the disposal of a machine is a relevant factor when considering replacing the machine.

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Definitions:

Real GDP

Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year, the index expressed as a decimal.

Per Capita GDP

The total Gross Domestic Product of a country divided by its population, indicating the average economic output per person.

Per Capita Income

The average income earned per person in a given area or country, calculated by dividing the total income by the population size.

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.