Economists Believe That Individuals Respond in a Predictable Way to Changes

question 82

Multiple Choice

Economists believe that individuals respond in a predictable way to changes in costs and benefits.The term that best describes this belief is

• A)opportunity cost
• B)demand
• C)supply
• D)scarcity
• E)rational behavior

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Definitions:

Noncontrollable Costs

Costs that cannot be influenced or altered by the actions of a manager or business unit, often determined by external factors.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces, such as raw materials and labor expenses.

Fixed Costs

Expenses that remain constant for a specific period regardless of changes in the volume of production or services provided.

Budget Reports

Financial documents that compare actual financial results to the projected budget over a specific period, often used for tracking financial performance and planning.