Which of the Following Is an Example of an Allowable

question 5

Multiple Choice

Which of the following is an example of an allowable cost considered by U.S. government contract?

• A) supervision costs
• B) costs of lobbying activities
• C) costs of alcoholic beverages
• D) costs of vacation for executives

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Definitions:

Demand Curves

Demand curves graphically represent the relationship between the price of a good and the quantity demanded by consumers.

Minimum Wage

is the lowest legal salary that employers can pay workers, set by government law to protect workers from unduly low pay.

Price Support

Government intervention in a market to maintain the price at a certain level, usually done through the purchase of surplus stock or direct subsidies to producers.

Price Floor

A minimum price, set by law or regulation, that must be paid for a good or service; often implemented to protect producers.