We Know That Resources Are Important for Economic Growth

question 32

Multiple Choice

We know that resources are important for economic growth.Which of the following statements about resources is true?

• A) All resources are ultimately human made, because without their use by people, resources would have no value.
• B) Very few resources are truly scarce; in fact, most exist in abundance.
• C) Resources can be natural, like mineral deposits or forests, or human made, like machinery and factories.
• D) All countries have the same endowments of resources.
• E) Most countries do a very poor job of exploiting the resources they have.

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Definitions:

Fixed Costs

Expenses that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance.

Variable Costs

Costs that fluctuate in direct proportion to changes in levels of production or sales activity within a business.

Total Contribution Margin

The amount left over from sales revenue after variable expenses have been deducted; it contributes to covering fixed costs and generating profit.

Fixed Costs

Charges that stay the same no matter the scale of production or sales, like rent, salaries, and insurance.