On january 1, 2018, tabitha designs purchased a patent giving it exclusive rights to manufacture a new type of synthetic clothing for $240,000. while the patent had a remaining legal life of 15 years at the time of purchase, tabitha expects the useful life to be only eight more years. in addition, tabitha purchase equipment related to the production of the new clothing for $140,000. the equipment has a physical life of 10 years but tabitha plans to use the equipment only over the patent’s service life and then sell it for an estimated $20,000. tabitha uses straight-line for all long-term assets. the amount to expense in 2021 related to the patent and equipment should be: a. $40,000b. $38,000c. $45,000d. $31,000

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; organization;

answer; closing the loop;