Which of the Following Is a Final Good or Service

question 173

Multiple Choice

Which of the following is a final good or service?

• A)Fuel bought by a trucking company.
• B)Fertilizer purchased by a farmer in Alberta.
• C)A haircut.
• D)The tires purchased by General Motors from Goodyear.
• E)The shampoo purchased by a hairdresser for use in the shop.

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Definitions:

Fixed Cost

Refers to expenses that do not change in total regardless of the level of production or sales volume, such as rent or salaries.

Variable Cost

Variable cost refers to expenses that fluctuate with the level of output or production, such as materials and labor costs.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent or salaries.

Production Level

The quantity of goods or services that are produced within a given timeframe by a business.