The Problem of Determining What Goods and Services Society Should

question 185

Multiple Choice

The problem of determining what goods and services society should produce:

• A)exists because we can produce more than we need or want.
• B)exists because there are not enough resources to provide all of the goods and services that people want.
• C)would not exist if all goods and services were scarce.
• D)would not exist if government owned all of the resources.

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Definitions:

Net Income

The total profit or loss of a company after all expenses, including taxes and operating costs, have been subtracted from revenues.

Break-Even Point

The point at which total cost and total revenue are equal, meaning there is no profit or loss.

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product and are integral to its production.

Direct Labour

The amount of effort contributed by employees who work directly on manufacturing a product or delivering a service.