Given That Resources Are Scarce

question 135

Multiple Choice

Given that resources are scarce,

• A)A "free lunch" is possible,but only for a limited number of people.
• B)Opportunity costs are experienced whenever choices are made.
• C)Poor countries must make choices,but rich countries with abundant resources do not have to make choices.
• D)Some choices involve opportunity costs while other choices do not.

Understand the process of accounting for insurance premiums and their impact on financial statements.

Calculate sales taxes owed to the taxing agency based on total sales.

Identify and record the correct entries for sales transactions inclusive of sales tax.

Understand the concept of scarcity and its implications for the allocation of resources in an economy.

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Definitions:

Total Fixed Costs (TFC)

The sum of all costs that remain constant regardless of the level of production or output in the short run.

Average Fixed Cost

The fixed costs of production divided by the total units of output, which decreases as production increases.

Total Cost

The complete cost of production, combining both fixed and variable costs.

Total Variable Cost

Total Variable Cost is the sum of all costs that vary with the level of production, such as materials and labor directly involved in the production.