Economics Is the Study of How People Use Resources to Produce

question 176

True/False

Economics is the study of how people use resources to produce goods and services and distribute them for consumption among various competing groups and individuals.

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Definitions:

Activity Level

A measurement of the volume of production or the quantity of services provided.

Activity Bases

Measures that assign costs to cost objects based on their use of activities; used in activity-based costing.

Mixed Cost

A cost consisting of both fixed and variable components and changes in response to variations in production or sales levels.

Variable And Fixed Cost

Expenses that include both variable costs, which fluctuate with production or service levels, and fixed costs, which remain constant regardless of activity.