Which Statement Is One of the Four Principles of Individual

question 179

Multiple Choice

Which statement is one of the four principles of individual choice?

• A)Resources are usually renewable.
• B)The true cost of something is impossible to measure.
• C)People take advantage of opportunities to make themselves better off only if there is no risk involved.
• D)Choices are necessary because resources are scarce.

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Definitions:

Fixed Expenses

Expenses that do not fluctuate with changes in production volume or sales, such as rent and salaries.

Variable Expenses

Costs that change in proportion to the level and nature of business activity, such as advertising, sales commissions, and shipping costs.

Cost Volume Profit Analysis

A managerial accounting technique used to determine the effects of changes in costs and volume on a company's profits.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating how much each unit contributes to covering fixed costs and generating profit.