ABEKA ECONOMICS Quiz 6
diminishing value of goods caused by wear and time
depreciation
total value of a business minus any liabilities
equity
t/f: a new car is a good example of an investment that APPRECIATES in value during the first ten years that you own it
false, depreciates
t/f: in a COMMAND economy, the consumers determine what goods are to be produced and in what quantity
false, free enterprise
t/f: the PRIVATE sector is controlled by national, state, and local governments
false, public
t/f: consumers in a free market economy constantly send market SYMBOLS to let producers know how much of a good to produce at a given price
false, signals
value of the best alternative foregone when a different alternative is taken
opportunity cost
excess of the total revenue paid by buyers for goods over the seller's total expense of producing these goods
profit
for an "as is" purchase, who is responsible for the repair of the item purchased?
the buyer
t/f: a computer is an example of a DURABLE good
true
t/f: to obtain needed goods, people in command economies buy and sell through BLACK MARKETS
true
cost of people running their own establishments or hiring managers to run the businesses for them
wage of management