The Existence of Money in an Economy Promotes Efficiency by

question 510

Multiple Choice

The existence of money in an economy promotes efficiency by

• A) creating an equal distribution of income.
• B) creating incentives to be self-sufficient.
• C) facilitating trade, thereby allowing for greater specialization.
• D) allowing for the formation of corporations as legal entities.

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Definitions:

UCC Balance

The outstanding balance on a loan or financing arrangement under the Uniform Commercial Code, often related to personal property loans.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the taxable income, thus lowering the overall tax liability.

Capital Cost Allowance (CCA)

A tax deduction in Canada that represents a business's investment in depreciable properties, allowing for the asset's cost to be written off over its useful life.

Taxable Income

The amount of an individual's or a corporation's income used to determine how much tax is owed to the government in a given tax year.