An Example of a Shortage Cost Is

question 66

Multiple Choice

An example of a shortage cost is:

• A) time spent finding suppliers.
• B) idle workers.
• C) transportation costs.
• D) foregone interest on working capital.

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Definitions:

Potential Output

The maximum amount of goods and services an economy can produce when it utilizes all of its resources efficiently, without causing inflation.

Golden Age

A period of great happiness, prosperity, and achievement, often idealized in historical contexts or specific fields.

Fiscal Policy

The use of government spending and taxation to influence the economy, including policies aimed at reducing unemployment, controlling inflation, and fostering economic growth.

Election Year

A year in which a formal decision-making process is conducted through which citizens vote to choose public officials or to decide on public policy issues.