Why Is It Necessary for All Economic Systems to Not

question 126

Multiple Choice

Why is it necessary for all economic systems to not only provide people with goods and services,but also restrict them from getting as much of these goods and services as they wish?

• A) Failure to do this could reduce the efficiency of the system by producing some goods and services that are not as highly valued as others.
• B) Failure to do this could lead to an inequitable allocation of goods and services produced.
• C) Failure to do this could lead to drastic shortages of goods and services.
• D) Failure to do this reduces efficiency and leads to an inequitable allocation of output.

Understand the concept of present value and how to calculate it in the context of leasing versus buying decisions.

Grasp the impact of depreciation, including straight-line and MACRS, on tax shields and cash flows.

Differentiate between operating leases and financial leases and understand their characteristics.

Identify the factors affecting the net advantage to leasing (NAL) and how to compute it.

---

Definitions:

Flexibility

The willingness to adapt or change in response to different circumstances or new information.

Multiple Contingencies

The consideration of various potential unforeseen events or circumstances that could affect the outcome of a plan or negotiation.

Definition Of Issues

The process of clearly identifying and articulating the specific points of disagreement or areas of negotiation between parties.

Discussion Evolves

The process of dialogue and conversation developing over time, often leading to new ideas and understandings.