Scarcity

question 40

Multiple Choice

Scarcity

• A)affects both market and public sector decision making.
• B)affects market, but not public sector decision making.
• C)affects public sector, but not market decision making.
• D)is really not an issue in such a wealthy nation as the United States.

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Definitions:

Variable Cost

A variable cost changes in proportion to the level of output or activity, in contrast to a fixed cost which remains constant regardless of activity.

High-Low Method

The high-low method is a statistical technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Cost Equation

An equation that reflects the relationship between costs, production volume, and other factors, often used for predicting costs at various levels of activity.

Two Points

In finance, two points refer to a one percent change in the face value of a financial instrument like a loan or mortgage, often related to fees or interest rates.