Which of the Following Is a Principle Concerning How People

question 38

Multiple Choice

Which of the following is a principle concerning how people interact?

• A)Markets are usually a good way to organize economic activity.
• B)Rational people think at the margin.
• C)People respond to incentives.
• D)All of the above are correct.

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Definitions:

FIFO

"First In, First Out," an inventory valuation method assuming that the oldest items in inventory are sold or used first.

LIFO

A inventory valuation method where the last items added to inventory are the first ones sold, standing for "Last In, First Out."

Average Cost

A calculation of the total cost of goods available for sale divided by the total units available for sale, used to compute cost of goods sold in certain inventory valuation methods.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company.