Which Two of the Ten Principles of Economics Are Illustrated

question 428

Multiple Choice

Which two of the Ten Principles of Economics are illustrated in this chapter?

• A)A country's standard of living depends on its ability to produce goods & People face tradeoffs.
• B)Prices rise when the government prints too much money & Governments can sometimes improve market outcomes.
• C)Governments can sometimes improve market outcomes & People face tradeoffs.
• D)People face tradeoffs & Prices rise when the government prints too much money .

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Definitions:

Absorption Costing

A method of accounting that encompasses the entire cost of producing a product, including direct materials, direct labor, and all overhead costs, both fixed and variable.

Expected Unit Sales

An estimate of the number of units that a company anticipates selling over a specific period.

Markup

An additional cost placed on the buying price of merchandise to offset running costs and achieve profits.

Absorption Costing

An approach to costing that encompasses all costs associated with manufacturing such as direct materials, direct labor, along with variable and fixed overheads, within the per unit cost of products.