In a Market Economy, Prices Are the Signals That Guide

question 221

True/False

In a market economy, prices are the signals that guide the allocation of scarce resources.

---

Definitions:

Salvage Value

The calculated return value of an asset at the end of its functional life.

Useful Life

The period over which an asset is expected to be useful in the operations of a business.

Plant Asset's

Tangible assets that are used in the operation of a business and are not intended for resale, such as machinery, buildings, and equipment.

Useful Life

The estimated duration of time that an asset is expected to be functional and economically viable for its intended purpose.