What a Business Does to Add Value to Inputs When

question 31

Multiple Choice

What a business does to add value to inputs when converting them to outputs is known as which of the following?

• A) inputs
• B) transformation processes
• C) outputs
• D) feedback

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Definitions:

Opportunity Cost of Production

The value of the best alternative use of resources that could have been used for producing something else.

Labor Cost

Represents the total expenses incurred by employers to compensate their workforce, including wages, benefits, and taxes.

Ad Valorem Tariffs

A type of tariff calculated as a percentage of the value of the imported goods, as opposed to a fixed fee per unit.

Specific Tariffs

Taxes imposed on imported goods at a specific rate per unit, such as per ton or per item, instead of a percentage of value.