Scientific Discoveries Allow for Technological Change as a Supply Shock

question 238

True/False

Scientific discoveries allow for technological change as a supply shock.

---

Definitions:

Residual Value

Residual value is the estimated value of an asset at the end of its useful life, reflecting what it could be sold for or its scrap value.

Double-Declining Balance

An accelerated method of depreciation that doubles the regular depreciation approach, resulting in larger depreciation expenses in the initial years of an asset's life.

Units-Of-Output

A method of depreciation that allocates the cost of an asset over its useful life based on the number of units it produces.

Straight-Line

A technique for computing an asset's depreciation by distributing its cost evenly across each year of its expected useful life.