Raw Materials Are an Example of a Firm's ____ Costs

question 174

Multiple Choice

Raw materials are an example of a firm's ____ costs.

• A) selling
• B) operating
• C) fixed
• D) overhead
• E) variable

---

Definitions:

Net Farm Income

The total income from agricultural activities after operating expenses and depreciation are subtracted.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, inverse to normal goods.

Consumer Incomes

The total earnings received by consumers, including wages, salaries, benefits, and other income sources, which affect their purchasing power.

Farm Income

The earnings from agricultural operations, including the sale of crops, livestock, and other farm-related sources.