A Difference Between the Market and the Public Sector Is

question 84

Multiple Choice

A difference between the market and the public sector is that

• A) scarcity exists only in the market sector.
• B) government can use force, while the market does not.
• C) we can only vote in the public sector.
• D) the cost of private goods to society is zero.

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Definitions:

Markup

The amount added to the cost of goods to cover overhead and profit, determining the selling price.

Selling Price

The amount of money a customer pays to buy a product or service.

Total Job Cost

The total cost associated with producing a specific job, including materials, labor, and overhead costs.

Unit Product Costs

The cost assigned to a single unit of product, encompassing direct materials, labor, and overhead.