When Making Contingency Estimates, the Contractor Should

question 102

Multiple Choice

When making contingency estimates, the contractor should

• A) estimate the amount to mitigate high impact and probable issues.
• B) include an amount for each issue that has high impact.
• C) include a small amount for each possible issue.
• D) heavily pad the estimates to include every issue.

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Definitions:

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling over a specific period.

Fiscal Policies

Government policies related to taxation and spending that aim to influence the overall economy.

Short Run

A period of time during which at least one input, such as plant size, is fixed and cannot be changed.

Unemployment

The condition in which individuals who are capable of working and are seeking work are unable to find employment.