After a Natural Resource Such as Gas or Coal Is

question 109

Multiple Choice

After a natural resource such as gas or coal is used up by the client,the client is responsible for restoring the land to its original condition.What is the cost of this restoration called?

• A)Impairment expense.
• B)Depletion expense.
• C)Amortization expense.
• D)Reclamation expense.

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Definitions:

Price Floor

A government-imposed minimum price set above the equilibrium price, preventing market prices from falling below a certain level.

Shortage

The occurrence of demand for a certain product or service outpacing the supply in the marketplace.

Surplus

The amount of an asset or resource that exceeds the portion that is actively utilized; in economic context, it often refers to excess production or budgetary surplus.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity, often to protect consumers.