When the Price of a Good That a Person Is

question 81

Multiple Choice

When the price of a good that a person is consuming falls, other things being constant, there is

• A) a decline in real income.
• B) a decline in purchasing power.
• C) a real income effect.
• D) no change in purchasing power.

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Definitions:

Canada Revenue Agency

The federal agency responsible for administering tax laws for the Canadian government and for most provinces and territories.

Accumulated Depreciation

The total amount of depreciation that has been recorded against a fixed asset over its useful life, reducing its book value.

Loss of $1,000

A financial term indicating that an entity has incurred a negative financial result, specifically being $1,000 less than initially accounted for or expected.

Impairment Loss

A reduction in the book value of an asset when its fair market value falls below its carrying amount on the balance sheet, indicating a permanent decline in value.