If All Factors of Production That Are Available for Use

question 159

Multiple Choice

If all factors of production that are available for use under current market conditions are being utilized, then the economy has:

• A) economic growth.
• B) comparative advantage.
• C) full employment.
• D) inefficient production.

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Definitions:

Operating Income

The income generated from the primary activities of a company, before subtracting any interest and tax expenses.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, representing the proportion of sales that turns into profit.

Operating Income

Income generated from the core operations of a company, excluding non-operating income and expenses, such as interest or tax.

Cost Centers

Departments or units within an organization that incur costs but do not directly generate revenues, often evaluated for efficiency and cost management.