Consider the Following Statements When Answering This Question: I

question 80

Multiple Choice

Consider the following statements when answering this question: I. Waiting lists for kidney transplants have been caused by a 1984 congressional law forbidding humans to sell their kidneys.
II) Randomly choosing citizens to serve on juries is an efficient mechanism for selecting jurors.

• A) I and II are true.
• B) I is true, and II is false.
• C) I is false, and II is true.
• D) I and II are false.

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Definitions:

External Sales

Sales made to parties outside of the company, as opposed to internal transactions.

Variable Cost

Costs that vary directly with the level of production or volume of output.

Excess Capacity

The situation where a company's production facilities can produce more goods than currently demanded by its market.

General Transfer-Prizing Rule

A principle used to determine the price at which goods and services should be transferred between departments within the same organization.