Which of the following is the best example of "depreciation"?
A)An individual worker becoming tired at the end of an eight-hour work day.
B)The notion that individuals obtain less utility from paying taxes than giving to charities.
C)A truck used by a pizzeria to make deliveries is worth less at the end of one year.
D)A rise in prices depreciating the value of consumers' real incomes.

Question

Quizplus · Accepted Answer

Depreciation refers to the decline in the value of an asset over time through wear and tear, obsolescence, or some other factor. In this case, the truck used by the pizzeria is an example of depreciation because it is worth less at the end of one year due to its use in deliveries. Option A refers to human fatigue, option B refers to personal preferences, and option D refers to inflation, which is not the same as depreciation.

Which of the Following Is the Best Example of "Depreciation