Which Two Terms Below Describe the Wages Paid to Security

question 116

Multiple Choice

Which two terms below describe the wages paid to security guards that monitor a factory 24 hours a day?

• A) variable cost and direct cost
• B) fixed cost and direct cost
• C) variable cost and indirect cost
• D) fixed cost and indirect cost

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Definitions:

Inflationary Expectations

The anticipation of future inflation rates, influencing economic decisions and behavior.

Discretionary Policy

Economic policies based on ad hoc decisions by the government or monetary authorities to influence the economy, such as changes in spending or taxation.

Inflationary Expectations

The anticipation by consumers and businesses of future inflation, which can influence economic behavior such as spending, saving, and investment.

Potential GDP

The maximum output an economy can produce without triggering inflation, if all resources are fully employed.