For Budgets to Be Effective

question 16

Multiple Choice

For budgets to be effective:

• A) Goals should be attainable.
• B) Employees affected by a budget should be consulted when it is prepared.
• C) Evaluations should be made carefully with opportunities to explain any failures.
• D) They should be properly applied to avoid negative effects.
• E) All of these.

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Definitions:

Production Possibilities Curves

A graphical representation that shows the maximum possible output combinations of two goods that can be produced with available resources and technology.

Specialization And Trade

An economic concept where individuals or entities focus on producing a limited scope of goods or services to trade for other goods or services rather than trying to produce everything themselves.

Law Of Increasing Opportunity

The principle that the opportunity cost of producing a good increases as more of that good is produced, reflecting trade-offs in resource allocation.

Production Possibilities Curves

A graphical representation that shows the maximum combination of goods and services that can be produced by an economy with given resources and technology.