Which of the Following Is Not a Reason People Choose

question 25

Multiple Choice

Which of the following is not a reason people choose to depend on others for goods and services?

• A)to improve their lives
• B)to allow them to enjoy a greater variety of goods and services
• C)to consume more of each good without working any more hours
• D)to allow people to produce outside their production possibilities frontiers

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Definitions:

Direct Expenses

Direct expenses are costs that can be directly traced to a specific cost object, such as a product, department, or project.

Departmental Contribution Margin

The difference between sales revenue and variable costs for a specific department, indicating its contribution to the overall profit.

Contribution Margin

The amount remaining from sales revenue after variable costs are subtracted, indicating how much contributes towards covering fixed costs and generating profit.

Indirect Expenses

Costs that are not directly attributable to the production of goods or services, such as utilities, rent, and administrative expenses.