Constraints May Include

question 81

Multiple Choice

Constraints may include:

• A)the availability of direct materials in manufacturing
• B)linear square feet of display space for a retailer
• C)direct labor in the service industry
• D)All of these answers are correct.

Understand the role and implications of nonexcludable and nonrival goods in a market economy.

Comprehend the use and impact of cost-benefit analysis in public decision making.

Identify the characteristics and challenges of managing common resources.

Understand the concept of marginal social benefit (MSB) and how it is calculated for different members in a society.

---

Definitions:

Current Yield

The interest or dividend income an investment generates, expressed as a percentage of the investment's current market price.

Face Value

The original value of a financial instrument as stated on the certificate or contract.

Market Price

represents the current price at which an asset or service can be bought or sold in the market.

Bonds

Fixed income instruments that represent a loan made by an investor to a borrower, typically corporate or governmental.