Which of the Following Statements Are True

question 226

Multiple Choice

Which of the following statements are true?

• A)Scarcity refers to shortages at existing market prices.
• B)As a result of scarcity, individuals must make choices and face trade-offs.
• C)It is impossible to satisfy unlimited human wants with limited resources.
• D)All of the answers are true statements.
• E)The only true statements are "As a result of scarcity, individuals must make choices and face trade-offs" and " "It is impossible to satisfy unlimited human wants with limited resources."

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Definitions:

Conversion Cost

The combined costs of direct labor and manufacturing overhead, reflecting the expenses to convert raw materials into finished goods.

Factory Overhead Cost

Indirect costs associated with manufacturing, such as utilities, maintenance, and salaries for managers, that cannot be traced directly to specific products.

Direct Labor Cost

The cost associated with the work done by those actually manufacturing a product or directly providing a service.

Factory Overhead

Refers to all the indirect manufacturing costs, such as utilities and rent for the production facilities, which are not directly tied to individual products.