An Economy That Has Many Unemployed Workers and Idle Factories

question 150

True/False

An economy that has many unemployed workers and idle factories is not operating efficiently.

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Definitions:

Fixed Costs

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

Contribution Margin

The amount by which the sales revenue of a product exceeds its variable costs, indicating how much contributes to covering its fixed costs and generating profit.

Variable Cost

Costs that change in proportion to the good or service that a business produces, varying depending on production volumes.

Fixed Costs

Fixed costs refer to expenses that do not change with the level of goods or services produced by the business within a certain range of activity or over a certain period.