The Value of a Good Is Determined By

question 64

Multiple Choice

The value of a good is determined by:

• A)the amount of resources used to produce it.
• B)the maximum amount of goods in the market.
• C)the amount of time it takes to produce it.
• D)the maximum amount that one is willing to sacrifice to get it.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Sales Units

The number of individual items or units a business sells within a specific period.

Variable Expenses

Expenses that change in proportion to the activity of a business such as production volume or sales.

Fixed Expenses

Costs that do not change in total despite fluctuations in the volume of goods or services produced or sold.