If Available Resources Are Being Used Efficiently

question 32

Multiple Choice

If available resources are being used efficiently,

• A)a society can increase the production of one good or service only by decreasing the production of some other good or service.
• B)society need no longer worry about tradeoffs.
• C)a society can increase the production of one good or service only by increasing the production of some other good or service.
• D)resources are no longer limited.
• E)scarcity is no longer a problem.

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Definitions:

Transfer Price

The price at which goods and services are sold between divisions within the same company, often used for accounting and tax purposes.

Variable Cost

A cost that varies directly and proportionally with changes in production volume or activity level, such as materials and labor costs.

Profit Margin

The ratio of a company's net income to its revenue, indicating the percentage of profit made from sales.

Operating Expenses

Expenses incurred through normal business operations, such as rent, utilities, and payroll.