Travel Services Include Purchases of Items by Residents of One

question 34

True/False

Travel services include purchases of items by residents of one country when they travel to another country.

---

Definitions:

Variable Costs

Expenses that vary directly with the amount of production or business operations.

Fixed Costs

Expenses that do not change in total amount with changes in the level of business activity or production volumes, such as rent, salaries, and insurance.

Unit Variable Cost

The cost associated with producing one unit of output, including labor, materials, and overhead, that varies directly with the level of production.

Fixed Manufacturing Costs

Costs that do not vary with the level of production output, such as rent, salaries, and insurance.