The Law of Increasing Additional Costs Is Due to

question 306

Multiple Choice

The law of increasing additional costs is due to

• A) government regulations.
• B) technological improvements.
• C) the fact that it is more difficult to use resources efficiently the more society produces.
• D) the fact that resources are not perfectly adaptable for alternative uses.

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Definitions:

Debenture Bond

A type of debt instrument not secured by physical assets or collateral but based on the issuer's creditworthiness and reputation.

Sold at Discount

A sale transaction in which an item is sold for less than its regular or listed price.

Bond Payable

A long-term debt instrument issued by corporations or governments to raise capital, with the obligation to pay back with interest.

Discount on Bonds Payable

The difference when a bond is issued for less than its face value or nominal value.