Variances Can Be Caused By

question 104

Multiple Choice

Variances can be caused by:
I. Out-of-control operations
II. Better-than-expected operations
III. Inappropriate benchmarks

• A) I and III only
• B) II and III only
• C) I and II only
• D) I, II, and III

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Definitions:

Consumer Preference

The subjective tastes and preferences of consumers, which determine the demand for different goods and services.

Efficiency

The extent to which resources are used optimally to achieve the desired outcomes with minimum waste.

Partial Equilibrium

An analysis focusing on the equilibrium in a single market without considering its effects on or from other markets.

Equilibrium Conditions

A state in a market where the quantity of a good supplied equals the quantity demanded, resulting in market stability and no pressure for price changes.