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