Scarcity refers to the gap between limited resources and theoretically limitless wants. Scarcity affects producers because they have to make a choice on how to best use their limited resources. On the other hand, it affects consumers because they have to make a choice on what services or goods to choose.
Answer:
The correct option is B
Explanation:
Rational economic decision is the process where the costs as well as the benefits of the various options are being compared in order to determine or evaluate the which option is rational. Rational decisions have total benefit greater than or equal to their cost. So, the rational economic decision concerned with the efficiency not with the fairness or equity.
Answer:
$133,600
Explanation:
Straight line depreciation expense = (cost of asset - salvage value) / number of year
Cost of asset = $340,000 + $14,000 + $40,000 = $394,000
($394,000 - $60,000) / 5 = $66,800
The amount of accumulated depreciation at December 31, 2018 = $66,800 x 2 = $133,600
The step involves identification of ethical issues.
Answer:
The interest payable on the loan is $5,000,option C
Explanation:
The interest is the cost incurred by the company for borrowing the $500,000 since no one is willing to part with their cash in loan agreement except that they have something in return.
The company has taken custody amount for 2 months (from November 1 2021 to 31 December 2021),hence it should recognized an interest payable for 2 months,which is computed thus:
interest payable=$500,000*6%*2/12=$5,000
