The Economic Perspective Entails

question 19

Multiple Choice

The economic perspective entails

• A) irrational behavior by individuals and institutions.
• B) a comparison of marginal benefits and marginal costs in decision making.
• C) short-term but not long-term thinking.
• D) rejection of the scientific method.

---

Definitions:

Fixed Cost

Costs that remain constant in total regardless of changes in the level of production or sales over a certain period of time, such as rent, salaries, and insurance.

Product Cost

The total amount of expenses incurred to produce a product, including direct labor, materials, and overhead.

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Goods Manufactured

The total value or volume of products that have been completed and are ready for sale during a specific accounting period.