Which of the Following Is Not One of the Three

question 87

Multiple Choice

Which of the following is not one of the three core economic issues that must be resolved?

• A)How to produce the goods and services we select.
• B)What to produce with unlimited resources.
• C)Who should get the goods and services we produce.
• D)What to produce with limited resources.

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Definitions:

Spending Variance

The difference between the budgeted amount of expense or revenue and the actual amount spent or received.

Activity Variance

The difference between planned activity costs and actual activity costs in managerial accounting, used for budget control and performance evaluation.

Fixed Cost

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance premiums.

Variable Cost

Expenditures that fluctuate with production output, including ingredients, packaging, and labor directly involved in production.