When an Entrepreneur Like Bill Gates Makes $10 Billion Through

question 49

Multiple Choice

When an entrepreneur like Bill Gates makes $10 billion through creating and selling new products,

• A) there will be exactly $10 billion less for other individuals in the economy.
• B) the total size of the economic pie has been increased.
• C) there will be more than $10 billion in losses to other workers who lose their jobs.
• D) it is likely that the new products are not as good as other products that are available in the market.

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Definitions:

Direct Materials

Materials that can be directly traced to the production of specific goods or services.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Manufacturing

The process of converting raw materials into finished products through various methods such as assembly, machining, or chemical processing.

Raw Materials Used

The total cost of all raw materials that are consumed in the production process during a specific period.