If Is Close to Zero

question 74

Multiple Choice

If
Is close to zero,

• A)the AD curve is vertical.
• B)the AD curve is relatively flat.
• C)the AD curve is horizontal.
• D)the AD curve is relatively steep.
• E)Not enough information is given.

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Definitions:

Units-Of-Activity

A method of depreciation that allocates the cost of an asset over its useful life based on its activity level, such as miles driven or hours used.

Salvage Value

The estimated resale value of an asset at the end of its useful life; it is used in calculating depreciation expense.

Depreciation

The orderly apportionment of a physical asset's cost throughout its useful life.

Useful Life

The estimated period an asset is expected to be used before it is deemed no longer useful for operations.