An Economy Is

question 3

Multiple Choice

An economy is

• A) a system for allocating resources
• B) a method of measuring growth
• C) a way of valuing ecosystem services
• D) a way of measuring how much is bought and sold

---

Definitions:

Fixed Costs

Regular outgoings that stay the same whether production or sales rates increase or decrease, for instance, rental costs or salary payments.

Net Income

This refers to the total profit of a company after all expenses and taxes have been deducted from total revenue.

Variable Cost

Costs that vary in proportion to the volume of goods or services produced, such as materials and labor.

Fixed Costs

Definition: Business expenses that remain the same regardless of the level of production or sales.