To Answer the Question of How the Goods and Services

question 61

Multiple Choice

To answer the question of how the goods and services are to be produced,society must decide:

• A) what products businesses want to produce.
• B) how to combine its scarce resources to produce the desired products.
• C) what products government wants.
• D) what products to export.

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Definitions:

Relevant Range

The span of activity or production volume over which fixed and variable costs remain constant on a per-unit basis.

Direct Costs

Direct costs are expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Merchandising Company

A business that purchases finished goods for resale, aiming to make a profit without changing the form of the goods.

Cost of Goods Sold

The direct costs related to the production of the goods that a company sells, including materials and labor.