What Is an Example of a Discretionary Cost

question 24

Multiple Choice

What is an example of a discretionary cost?

• A)executive travel costs
• B)the cost of leasing machinery
• C)licence fees for fleet of vehicles
• D)depreciation on a factory building

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Definitions:

Labor Markets

Economic markets in which labor services are bought and sold, including the supply of labor by households and the demand for labor by firms.

Indexation

The automatic correction by law or contract of a dollar amount for the effects of inflation

Time Inconsistency

The tendency of people to change their plans or decisions over time in ways that they might not have predicted or considered optimal originally.

Zero Inflation

A situation in which prices remain constant over time, indicating no general increase in the level of prices in an economy.