A Major Reason for the Cost Overruns in Big-Ticket Items

question 103

Multiple Choice

A major reason for the cost overruns in big-ticket items that plague military spending is that

• A) most spending programs are indexed to the inflation rate.
• B) the number of items produced is typically quite large.
• C) gold-plating practices have been outlawed by Congress.
• D) military chiefs want the best weapons that money can buy.
• E) most spending programs are approved by industrial leaders.

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Definitions:

Economic Growth

An increase in the economy’s ability to produce goods and services; reflected by an outward shift of the economy’s production possibilities frontier

Unattainable Combinations

refers to product mix scenarios that cannot be achieved with the current resources or technology in economic or production contexts.

Fully And Efficiently

A condition where resources are allocated in a way that maximizes productivity and minimizes waste or inefficiency.

Division Of Labor

Allocating distinct sections of a manufacturing operation or duty to various people to boost efficiency.