Three Broad Categories of Contracts Are Fixed Price,or Lump Sum;

question 12

Multiple Choice

Three broad categories of contracts are fixed price,or lump sum; ____; and time and material.

• A) cost intensive
• B) cost averse
• C) cost reducing
• D) cost reimbursable

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Definitions:

Factor of Production

Refers to the resources used in the creation of goods and services, which typically include land, labor, capital, and entrepreneurship.

Inelastic Demand

A market condition where the demand for a good or service is relatively unresponsive to changes in its price.

Substitute Resources

Alternative resources that can be used in place of another to satisfy consumer demand or production needs, often affecting market competition and prices.

Elastic Demand

A market situation where the quantity demanded of a good or service changes significantly as its price changes.