The Military-Industrial Complex Refers to

question 12

Multiple Choice

The military-industrial complex refers to

• A) the fact that the postindustrial economy is increasingly dominated by war production.
• B) the fact that the world is steadily becoming more and more dangerous.
• C) the fact that war is very costly.
• D) the close link between the government, defense contractors, and the military.

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Definitions:

Processing Costs

Expenses directly associated with the transformation of raw materials into finished goods.

Sunk Cost

Costs that have already been incurred and cannot be recovered, and therefore should not affect future business decisions.

Obsolete Desk Calculators

Desk calculators that have become outdated due to technological advancements or changes in user preferences, rendering them less useful or unwanted.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes to covering fixed costs and profit.