When Constructing a Budget,you Should Take All the Following into Account

question 25

Multiple Choice

When constructing a budget,you should take all the following into account except for:

• A) Spending habits
• B) Extraordinary expenses
• C) Value of assets
• D) Income

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Definitions:

Short-run Marginal Cost

The cost incurred by producing one additional unit of a product or service in the short term, where some factors of production are fixed.

Envelope

In economics, often describes a theoretical outer limit or boundary, such as the envelope curve which envelopes all the possible positions of equilibrium.

Short-run Expansion Path

The route a firm takes to increase output by optimizing the combination of inputs used, given at least one fixed input, over a short period.

Variable Input

A production input whose quantity can be changed in the short term to influence output.