A Resource Sink Is ______________

question 5

Multiple Choice

A resource sink is ______________.

• A)a resource that is desirable, such that different cities must compete to obtain enough of it for their citizens
• B)an area that produces many things and needs to export them to a variety of places
• C)an area that produces a single resource and can control the price of that commodity or service
• D)an area that produces almost none of the things that it needs
• E)an area that is able to trade for all of the things that it needs

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales over a certain time period, such as rent, insurance, and salaries.

Break Even

A situation where the overall expenses match the overall income, causing zero net profit or loss.

Target Profit

The predetermined amount a business aims to earn over a specific period, used for planning and performance evaluation.

Selling Price

The cost at which customers can purchase a product or service.