Depreciation refers to a decrease in the value of a good caused by

A) an increase in the price level.
B) a decrease in the price level.
C) "wear and tear" of capital goods over time.
D) the depreciation allowance.
E) a decrease in purchasing power.

C

Economics

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Jim's Nursery produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim's profit is

A) $100. B) $200. C) $400. D) $800.

Economics

Economic theory predicts that the price of a depletable resource will rise as it becomes more scarce

a. True b. False Indicate whether the statement is true or false

Economics