Which of the Following Terms Refers to an Actual Cost

question 71

Multiple Choice

Which of the following terms refers to an actual cost rather than an estimate?

• A) Budget.
• B) Encumbrance.
• C) Expenditure.
• D) Appropriation.

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Definitions:

Relatively Elastic

Describes a situation where demand for a product is sensitive to changes in its price, meaning consumers will significantly reduce or increase their demand based on price changes.

Sensitive

Responsive or easily affected by external conditions or stimuli.

Economic Theory

A concept or principles developed to explain how economies work and how economic agents interact.

Substitute Goods

Goods or services that act as substitutes for each other, meaning that if the price of one goes up, the demand for the other also rises.