Which of the Following Could Be Called a Virtue of Raising

question 10

Multiple Choice

Which of the following could be called a virtue of raising prices of depletable resources? (i) It would discourage consumption and waste.(ii) It would stimulate more efficient use of resources.(iii) It would encourage innovation and discovery of alternatives.

• A)i, ii, and iii
• B)Only i
• C)Only ii
• D)Only iii

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Definitions:

Budgets

Financial plans that estimate revenue and expenses over a specified future period of time, often used for planning and controlling financial performance.

Variable Cost Estimates

Projections of costs that vary directly with the level of output or production volume.

Revenue Variances

The difference between actual revenue and budgeted or forecasted revenue, indicating performance against financial goals.

Fixed Cost Estimates

These are projections of costs that do not change in total with changes in business activity level, such as rent or salaries.