Administrative Agencies Are Generally Created By

question 49

Multiple Choice

Administrative agencies are generally created by:

• A) a Supreme Court order
• B) federal courts to help in areas difficult to regulate by litigation
• C) an enabling statute of Congress
• D) an executive order of the President
• E) a Supreme Court order following an enabling statute of Congress

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Costs of production that vary with the level of output, such as raw materials and labor expenses.

Temporarily

For a limited period of time; not permanent.

Short-Run Profits

Earnings that a company makes over a short period of time, not taking into consideration the full costs of production in the long term.